diff --git "a/clean/cb_requests/15adc4c7fb8c9af351075777f3fb13c8.json" "b/clean/cb_requests/15adc4c7fb8c9af351075777f3fb13c8.json"
new file mode 100644--- /dev/null
+++ "b/clean/cb_requests/15adc4c7fb8c9af351075777f3fb13c8.json"
@@ -0,0 +1 @@
+{"doc_id": "15adc4c7fb8c9af351075777f3fb13c8", "text": "PUBLIC \nPUBLIC \nq \n \n \n \n \n \n \n \n \n \nBANK OF GHANA \nMONETARY POLICY REPORT \n \n \n \n \n \n \n \n \n \n \nJuly 2025 \nB\nA\nN\nK\nO\nF\nG\nH\nA\nN\nA\nE\nS\nT\n.\n1\n9\n5\n7\n \n \nPUBLIC \nPUBLIC \nThe Monetary Policy Report highlights the economic and financial sector assessments that the Monetary Policy \nCommittee (MPC) considered prior to the policy decision during the 125th meeting held in July 2025. \nMonetary Policy Objective in Ghana \nThe primary objective of the Bank of Ghana is to ensure stability in the general level of prices which has been \ndefined as maintaining inflation over the medium term, within a band of 8± 2 percent. Without limiting the \nprimary objective, the Bank is also expected to support the general economic policy of the government, promote \neconomic growth and development, foster the effective and efficient operation of the banking and credit system; \nand contribute to the promotion and maintenance of financial stability. \n \nMonetary Policy Strategy \nTo achieve the objective of price stability, Bank of Ghana was granted operational independence to use whichever \npolicy tools it sees appropriate to stabilise inflation around the target band. The Bank of Ghana’s framework for \nconducting monetary policy is Inflation Targeting (IT), in which the central bank uses the Monetary Policy Rate \n(MPR) as the primary policy tool to set the monetary policy stance and anchor inflation expectations in the \neconomy. \n \nThe MPC Process \nThe MPC is a statutorily constituted body established by the Bank of Ghana (Amendment) Act, Act 2016 (Act 918) \nto formulate monetary policy. The MPC consists of seven members – five from the Bank of Ghana (including the \nGovernor who is the Chairman) and two external members appointed by the Board of the Bank. The MPC meeting \ndates are determined at the beginning of each year. The MPC meets bi-monthly to assess economic conditions \nand risks to the inflation outlook, after which a policy decision is made on positioning the MPR. Each decision \nsignals a monetary policy stance of tightening (increase), easing (decrease) or no change (stay put). The policy \ndecision is arrived at by consensus with each member stating reasons underlying a preferred MPR decision. \nSubsequently, the decision is announced at a press conference held after each MPC meeting and a press release \nissued to financial markets and the public. \n \n©Research Department, Bank of Ghana MPC Report – July 2025 \nwww.bog.gov.gh \n \n \n \n1 \n \nPUBLIC \nTable of Contents \n \n1. GLOBAL ECONOMIC DEVELOPMENTS .................................................................................................................... 3 \n1.0 HIGHLIGHTS .................................................................................................................................................................... 3 \n1.1 GLOBAL GROWTH DEVELOPMENTS ............................................................................................................................... 3 \n1.2 GLOBAL PRICE DEVELOPMENTS ..................................................................................................................................... 4 \n1.3 GLOBAL FINANCIAL MARKETS DEVELOPMENTS ............................................................................................................ 4 \n1.4 CURRENCY MARKETS ..................................................................................................................................................... 5 \n2. EXTERNAL SECTOR DEVELOPMENTS ...................................................................................................................... 8 \n2.0 HIGHLIGHTS .................................................................................................................................................................... 8 \n2.1 COMMODITY PRICE TRENDS ........................................................................................................................................... 8 \n2.2 TRADE BALANCE ............................................................................................................................................................. 9 \n2.3 CURRENT ACCOUNT ...................................................................................................................................................... 10 \n2.4 CAPITAL AND FINANCIAL ACCOUNTS ........................................................................................................................... 10 \n2.5 INTERNATIONAL RESERVES .......................................................................................................................................... 10 \n2.6 EXTERNAL SECTOR OUTLOOK ...................................................................................................................................... 10 \n3. REAL SECTOR DEVELOPMENTS ............................................................................................................................... 12 \n3.0 HIGHLIGHTS .................................................................................................................................................................. 12 \n3.1 ECONOMIC GROWTH .................................................................................................................................................... 12 \n3.2 TRENDS IN REAL SECTOR INDICATORS ......................................................................................................................... 12 \n3.3 LABOUR MARKET ACTIVITY......................................................................................................................................... 14 \n3.4 COMPOSITE INDEX OF ECONOMIC ACTIVITY ............................................................................................................... 14 \n3.5 CONSUMER AND BUSINESS SURVEYS ............................................................................................................................. 14 \n4. MONETARY AND FINANCIAL DEVELOPMENTS................................................................................................... 18 \n4.0 HIGHLIGHTS .................................................................................................................................................................. 18 \n4.1 DEVELOPMENTS IN MONETARY AGGREGATES ............................................................................................................. 18 \n4.2 RESERVE MONEY .......................................................................................................................................................... 19 \n4.3 DEPOSIT MONEY BANKS CREDIT DEVELOPMENTS ...................................................................................................... 20 \n4.4 MONEY MARKET DEVELOPMENTS ............................................................................................................................... 21 \n4.5 STOCK MARKET DEVELOPMENTS ................................................................................................................................. 22 \n4.6 CONCLUSION ................................................................................................................................................................. 23 \n5. BANKING SECTOR DEVELOPMENTS ....................................................................................................................... 24 \n5.0 HIGHLIGHTS .................................................................................................................................................................. 24 \n5.1 BANKS’ BALANCE SHEET .............................................................................................................................................. 24 \n5.2 CREDIT RISK ................................................................................................................................................................. 26 \n5.3 FINANCIAL SOUNDNESS INDICATORS ............................................................................................................................ 28 \n5.4 CREDIT CONDITIONS SURVEY ....................................................................................................................................... 31 \n5.5 CONCLUSION AND OUTLOOK ........................................................................................................................................ 32 \n6. MACROPRUDENTIAL DEVELOPMENTS ................................................................................................................. 33 \n6.0 OVERVIEW .................................................................................................................................................................... 33 \n6.1 MICROFINANCIAL RISK ASSESSMENT ........................................................................................................................... 33 \n6.2 RISK OF CAPITAL FLIGHT ............................................................................................................................................. 34 \n6.3 BANKING SECTOR SOUNDNESS ...................................................................................................................................... 35 \n6.4 BANKING SECTOR RESILIENCE ..................................................................................................................................... 36 \n6.5 CONCLUSION ................................................................................................................................................................. 38 \n7. FISCAL DEVELOPMENTS ............................................................................................................................................ 39 \n7.0 HIGHLIGHTS .................................................................................................................................................................. 39 \n7.1 REVENUE AND GRANTS ................................................................................................................................................. 39 \n7.2 EXPENDITURE ............................................................................................................................................................... 39 \n7.3 BUDGET BALANCE AND FINANCING .............................................................................................................................. 42 \n7.4 PUBLIC DEBT ANALYSIS ................................................................................................................................................ 43 \n8. PRICE DEVELOPMENTS ............................................................................................................................................... 46 \n8.0 HIGHLIGHTS .................................................................................................................................................................. 46 \n8.1 GLOBAL GROWTH AND INFLATION DEVELOPMENTS.................................................................................................... 46 \n8.2 DOMESTIC PRICE DEVELOPMENTS ............................................................................................................................... 47 \n8.3 INFLATION OUTLOOK AND RISK ASSESSMENT ............................................................................................................. 49 \nAPPENDIX............................................................................................................................................................................. 51 \n \n \n2 \n \nPUBLIC \nOverview \n \n \nThe global outlook is becoming increasingly challenging, due to the erection of substantial \nbarriers to trade, especially tariffs proposed by the U.S. This has contributed to raising policy \nuncertainty, which has negatively impacted business and consumer confidence and is set to hold back \ntrade and investment, while tightening financial conditions. The global disinflation process has stalled \nsomewhat, prompting more restrictive monetary policy stances and dampening growth prospects. \n \nOn the domestic front, the Bank’s high frequency real sector indicators point to a sustained \npickup in economic activity. The updated Composite Index of Economic Activity recorded an annual \ngrowth of 4.4 percent in May 2025, compared to a growth of 3.4 percent for the corresponding period \nof 2024. This development was mainly driven by improvements in international trade activities, \nconsumption of goods and services by households and firms, construction activities, and tourist arrivals. \n \nHeadline inflation has declined consecutively in the first six months of the year. Between December \n2024 and June 2025, it fell by 10.1 percentage points to 13.7 percent. It has been driven by both food \nand non-food inflation. The decline has been broad-based, driven by tight monetary policy and a sharp \nappreciation of the domestic currency. \n \nThe external sector has continued to perform strongly, with a record provisional current account \nsurplus of US$3.4 billion in the first half of 2025. This has been driven mainly by increased export \nearnings from gold and cocoa. The current account surplus, together with a surplus in the capital \naccount, amounted to US$3.5 billion, putting the country in a net lending position with the rest of the \nworld. The strong external performance resulted in a significant build-up in international reserves. \n \nThe cedi has remained relatively stable despite rising global uncertainty. This performance has \nbeen driven by a range of factors, including the tight monetary policy stance, BoG’s support to the \nmarket, positive market sentiments from a ratings upgrade, continuous reserve build-up from exports, \nremittances, and IMF inflows. \n \nThe monetary and financial sector was stable during the period under review. Growth in monetary \naggregates remained subdued, reflecting tight monetary conditions consistent with policy efforts to \nsustain the disinflation process. There was significant build-up in Net Foreign Assets (NFA) but the \neffect was contained through sterilization efforts. Credit slowed during the period under review. Year \non year, money market rates broadly trended downwards at the short end of the primary market while \ninterest rates on longer-dated instruments remained stable. The GSE Composite Index (GSE-CI) \nrecorded significant gains relative to the corresponding period last year. This was underpinned by \nimproved investor appetite, driven by significant recovery in the profitability of listed financial \ninstitutions and improved liquidity in that segment of the market. \n \nThe banking sector performed strongly in the first six months of 2025. The sector recorded \nincreased profitability levels than for the same period a year earlier, mainly driven by growth in assets \nand deposits. The Financial Soundness Indicators remained healthy, recording improvements in \nsolvency, efficiency and asset quality indicators in June 2025 relative to June 2024; however, liquidity \nindicators moderated. The industry’s non-performing loans (NPL) ratio also improved on account of a \nlarger growth in loans and advances than in the NPL stock. \n \n \n3 \n \nPUBLIC \n1. Global Economic Developments \n \n1.0 Highlights \nThe global outlook is becoming increasingly challenging, amid the erection of substantial barriers to \ntrade, especially by the U.S. The global disinflation process has stalled somewhat, and headline \ninflation has remained stickier downwards than anticipated in some countries. Financial conditions \nremain restrictive, reflecting still high policy rates and long-term bond yields amid rising uncertainty. \nIn the local forex market, the Ghana cedi maintained its stability, supported by policy and a strong \nreserves build-up. \n \n1.1 Global Growth Developments \nThe global outlook is becoming increasingly challenging due to a significant increase in trade barriers, \ncontributing to policy uncertainty. Rising global uncertainty has negatively impacted business and \nconsumer confidence and is set to hold back trade and investment, while tightening financial conditions. \nAgainst this backdrop, global growth projections have been downgraded from 3.3 percent in 2024 to \n3.0 percent in 2025. The downgrades are broad-based, with growth in the U.S. and China expected to \nmoderate much more sharply than their peers amid the tariff wars. Activity in the global economy will \nbe largely supported by growth in Emerging Market and Developing Economies \n \nRisks to the outlook for growth are tilted to the downside. Growth could be hit by further bilateral tariff \nactions and countermeasures. This will prolong economic and trade policy uncertainty, deteriorating \nconsumer and business confidence. Meanwhile, the on-going trade measures could elevate downward \npressures on household and business spending. Also, headline inflation may remain stickier downwards \nthan anticipated, prompting more restrictive monetary policy stances and dampening growth prospects. \nThe uncertainty about how central banks will navigate the difficult trade-offs they face amid tariffs \ncould trigger a disruptive repricing of risky assets, sharp tightening of financial conditions, and \nappreciation of the dollar. \n \nTable 1.1: Overview of the WEO Projections \n \nOverview of the World Economic Outlook Projections\n(Percent change)\n2024\n2025\n2026\nWorld \n3.3\n3.0\n3.1\nAdvanced Economies\n1.8\n1.5\n1.6\nUnited States \n2.8\n1.9\n2.0\nEuro Area\n0.9\n1.0\n1.2\nGermany\n–0.2\n0.1\n0.9\nFrance\n1.1\n0.6\n1.0\nItaly\n0.7\n0.5\n0.8\nSpain\n3.2\n2.5\n1.8\nJapan \n0.2\n0.7\n0.5\nUnited Kingdom\n1.1\n1.2\n1.4\nCanada\n1.6\n1.6\n1.9\nOther Advanced Economies\n2.2\n1.6\n2.1\nEmerging Market and Developing Economies\n4.3\n4.1\n4.0\nChina\n5.0\n4.8\n4.2\nIndia\n6.5\n6.4\n6.4\nRussia\n4.3\n0.9\n1.0\nBrazil\n3.4\n2.3\n2.1\nMexico\n1.4\n0.2\n1.4\nSub-Saharan Africa \n4.0\n4.0\n4.3\nNigeria\n3.4\n3.4\n3.2\nSouth Africa\n0.5\n1.0\n1.3\nGhana\n5.7\n4.0\n4.8\nSource: IMF, WEO July.\nProjections\n \n4 \n \nPUBLIC \n \n1.2 Global Price Developments \nHeadline inflation has remained stickier downwards than anticipated in some countries, with inflation \nprojected to remain above most central bank’s target in 2025. The FAO food price index picked up in \nJune 2025 due to supply constraints emanating from climate related shocks. Pressures from food prices \nwere, however, partially offset by a decline in oil prices due to increased supply from non-OPEC \ncountries amid reduced global demand. Core inflation remained elevated due to persistence in services \ninflation and a resurgence in core goods inflation. Reflecting the persistence in inflation, price \nexpectations have been revised up for 2025 and 2026; however, expectations are expected to return to \ntarget in 2027. \n \nIn the outlook, global headline inflation is expected to decline, but this outcome is subject to high \nuncertainty. On the downside, the decline in oil prices in preceding months is expected to be sustained \nin the near term, with oil prices projected by the IMF to close the year at $66.94 per barrel. In addition, \nthe cooling of the labour markets will reduce wage growth pressures and support the disinflation \nprocess. However, potential tariff increases may drive up trade costs and cause prices to increase in \nlevying countries. Also, increasing food prices and the persistence of core inflation remain an upside \nrisk to prices. \n \nFigure 1.1: Headline Inflation in Advanced and Emerging Market Economies \n \nSource: Bank of Gana, Trading Economics \n \n \n1.3 Global Financial Markets Developments \nGlobal financial conditions remain restrictive, reflecting still-high policy rates and long-term bond \nyields amid rising uncertainty. Major central banks have adopted a cautious stance in their monetary \npolicy decisions. The Fed, the Bank of England, and the Bank of Japan have maintained policy rates at \ncurrent levels, due to elevated uncertainty and ongoing trade tensions. Also, long-term bond yields \nremain high, driven by trade policy uncertainty. However, equity markets continue to rally, reflecting \ncooling tariff fears and stronger earnings. In addition, portfolio flows to EMDEs rebounded in June \n2025, amid search for higher yields. \n \nIn the outlook, financial conditions will remain tight in the near term, reflecting the persistence in \nservices and good inflation. Also, higher policy rates amid heightened uncertainty and rising long term \nbond yields will keep financing conditions tighter for longer. Rising economic policy uncertainty amid \n \n5 \n \nPUBLIC \ntrade barriers could trigger a disruptive repricing of risky assets while putting downward pressure on \nEM currencies. \n \n \nTable 1.2: Monetary Policy Stance of Selected Central Banks \n \nSource: Growth Rate (World Bank); Debt/GDP (IMF) Policy Rates (Trading Economics) \n \n1.4 Currency Markets \nOn the international currency market, the U.S. dollar has trended down since January 2025 due to \nDonald Trump’s trade policies, expected weakness in the U.S. economy, and a recovery in the Euro \nArea. The dollar's recent rally was fuelled by optimism over U.S.-China tariff agreements and the fading \nof tariff fears. Subdued performance of the dollar has provided some support to EMDE currencies in \nthe review period. \n \nOn the domestic currency market, the cedi remained relatively stable despite rising global uncertainty. \nThe performance of the currency was supported by the tight monetary policy stance, BoG’s support to \nthe market, positive market sentiments from a ratings upgrade, continuous reserve build-up from \nexports, remittances and the IMF inflows. The cedi, however, experienced some demand pressures from \ncorporate, commerce and the energy sectors as well as bond sales by foreign investors. In the outlook, \nthe cedi’s performance will depend on continued fiscal consolidation, the strength of the U.S. dollar, \nthe level of reserves build-up, and BoG market support. In the interbank market, the cedi appreciated \nby 42.6 percent, 30.3 percent, and 25.6 percent against the dollar, the pound, and the euro, respectively, \non a year-to-date basis. This is against a depreciation of 18.6 percent, 17.9 percent, and 16.0 percent, \nagainst the dollar, the pound, and the euro, respectively, during the same period in 2024. However, the \ncedi was more volatile during the first 142 transaction days in 2025 compared to other years. \n \n \n \n \n \n \n \nCountry\nPolicy rate -\nPrevious (%)\nPolicy Rate \nCurrent (%)\nForecast\nInflation \nMay, 2025\nInflation \nJune, 2025\nReal rate Infl Target\nOverall \nFiscal \nDeficit \n(2024,% \nof GDP)\nGDP \nGrowth \n(Dec.2024)\nGross \nDebt/GDP(\n2024,%)\nYTD \nDepr/Appr \n22nd July \n2025\nU.S \n4.5\n4.5\n4.5\n2.4\n2.7\n1.8\n2%\n-7.3\n2.8\n120.8\nEuro Area\n2.4\n2.15\n2.15\n1.9\n2\n0.15\n< 2%\n-3.1\n0.9\n87.7\n13.57\nUK\n4.25\n4.25\n4\n3.4\n3.6\n0.7\n2%\n-5.7\n1.1\n101.2\n8.06\nJapan\n0.5\n0.5\n0.75\n3.5\n3.3\n-2.8\n2%\n-2.5\n0.1\n236.7\n6.13\nRussia\n21\n20\n18\n9.9\n9.4\n10.6\n4%\n-2.2\n4.1\n20.3\n44.46\nIndia\n6\n5.5\n5.5\n2.82\n2.10\n3.9\n4±2%\n-7.4\n6.5\n81.3\n-0.88\nBrazil\n14.75\n15\n15\n5.32\n5.35\n9.65\n4.5±1.5%\n-6.6\n3.4\n87.3\n11.00\nTurkey\n46\n46\n43.5\n35.41\n35.05\n10.95\n5±2%\n-5.2\n3.2\n26\n-12.52\nMalaysia\n3\n2.75\n2.75\n1.2\n1.1\n1.7\n3% - 4%\n-4\n5.1\n70.4\n5.66\nIndonesia\n5.5\n5.25\n5.25\n1.6\n1.87\n3.38\n3.5% ± 1%\n-2.3\n5\n40.2\n-1.28\nChile\n5\n5\n4.75\n4.4\n4.1\n0.9\n3±1%\n-2.7\n2.6\n42.0\n4.67\nGhana\n28\n28\n18.4\n13.7\n14.3\n8±2%\n-7.7\n5.7\n70.5\n40.67\nSouth Africa\n7.5\n7.25\n7.25\n2.8\n3\n4.3\n3% -6%\n-6.1\n0.6\n76.4\n7.32\nNigeria\n27.5\n27.5\n27.5\n22.97\n22.22\n5.28\n6% -9%\n-3.4\n3.4\n52.9\n0.82\nKenya\n10\n9.75\n9.75\n3.8\n3.8\n5.95\n2.5-7.5%\n-5.5\n4.5\n65.6\n0.07\nZambia\n14.5\n14.5\n14.5\n15.3\n14.1\n0.4\n6%-8%\n-3.3\n4\n114.9\n20.57\nMorocco\n2.25\n2.25\n2.25\n0.4\n0.4\n1.9\n-4.1\n3.2\n70\n12.61\nAngola\n19.5\n19.5\n19.5\n20.7\n19.73\n-0.23\n9-11%\n-1\n4.5\n62.5\n-0.32\nEgypt\n24\n24\n24.00\n16.8\n14.9\n9.1\n7± 2%\n-7.1\n2.4\n90.9\n3.62\nSource: Growth rate(World Bank); Debt/GDP (IMF)\nPolicy Rates (Trading Economics), YTD depreciation/appreciation is from Bloomberg\n \n6 \n \nPUBLIC \nTable 1.3: Interbank Exchange Rates \n \nSource: Bank of Ghana Staff Calculations \n \nThe cedi appreciated by 21.8 percent, and 29.0 percent, respectively, in trade weighted terms and forex \ntransaction weighted terms on a year-to-date basis in June 2025, reversing the depreciation of 19.9 \npercent and 22.5 percent, respectively, for the same period in 2024. \n \n \nTable 1.4: Nominal Effective Exchange Rate \n \nSource: Bank of Ghana Staff Calculations \n \nIn real bilateral terms, the cedi appreciated by 30.8 percent, 23.9 percent, and 21.7 percent, against the \ndollar, the pound, and the euro, respectively, on a year-to-date basis in June 2025. Comparatively, over \nthe same period in 2024, the cedi had experienced a depreciation of 11.4 percent, 9.5 percent, and 7.7 \npercent, respectively against the dollar, the pound, and the euro. \n \n \n \n \nExchange Rate Movements\nUS$/GHC*\nMonthly \ndepreciation/a\nppreciation\nYear-to-Date \ndepreciation/\nappreciation\nGBP/GHC*\nMonthly \ndepreciation/a\nppreciation\nYear-to-Date \ndepreciation/\nappreciation\nEuro/GHC*\nMonthly \ndepreciation/\nappreciation\nYear-to-Date \ndepreciation/a\nppreciation\n2023\nJan\n10.7997\n-20.6\n-20.59\n13.2863\n-22.4\n-22.39\n11.7262\n-22.0\n-22.01\nFeb\n11.0135\n-1.9\n-22.13\n13.3699\n-0.6\n-22.87\n11.7182\n0.1\n-21.95\nMar\n11.0137\n0.0\n-22.13\n13.6218\n-1.8\n-24.30\n11.9657\n-2.1\n-23.57\nApr\n10.9516\n0.6\n-21.69\n13.7624\n-1.0\n-25.07\n12.0876\n-1.0\n-24.34\nMay\n10.9715\n-0.2\n-21.83\n13.5888\n1.3\n-24.12\n11.6978\n3.3\n-21.82\nJune\n10.9972\n-0.2\n-22.02\n13.9879\n-2.9\n-26.28\n12.0073\n-2.6\n-23.83\nJuly\n11.0034\n-0.1\n-22.06\n14.1482\n-1.1\n-27.12\n12.1272\n-1.0\n-24.59\nAug\n11.0192\n-0.1\n-22.17\n13.9514\n1.4\n-26.09\n11.9473\n1.5\n-23.45\nSep\n11.1285\n-1.0\n-22.94\n13.5935\n2.6\n-24.14\n11.7774\n1.4\n-22.35\nOct\n11.4963\n-3.2\n-25.40\n13.9399\n-2.5\n-26.03\n12.1438\n-3.0\n-24.69\nNov\n11.6206\n-1.1\n-26.20\n14.6821\n-5.1\n-29.77\n12.6756\n-4.2\n-27.85\nDec\n11.8800\n-2.2\n-27.81\n15.1334\n-3.0\n-31.86\n13.1264\n-3.4\n-30.33\n2024\nJan\n12.0356\n-1.3\n-1.29\n15.3027\n-1.1\n-1.11\n13.0547\n0.5\n0.55\nFeb\n12.4642\n-3.4\n-4.69\n15.8022\n-3.2\n-4.23\n13.5234\n-3.5\n-2.94\nMar\n12.8770\n-3.2\n-7.74\n16.2617\n-2.8\n-6.94\n13.9031\n-2.7\n-5.59\nApr\n13.2739\n-3.0\n-10.50\n16.6243\n-2.2\n-8.97\n14.1900\n-2.0\n-7.50\nMay\n14.1301\n-6.1\n-15.92\n17.9996\n-7.6\n-15.92\n15.3345\n-7.5\n-14.40\nJune\n14.5860\n-3.1\n-18.55\n18.4375\n-2.4\n-17.92\n15.6270\n-1.9\n-16.00\nJuly\n14.9009\n-2.1\n-20.27\n19.1305\n-3.6\n-20.89\n16.1065\n-3.0\n-18.50\nAug\n15.1899\n-1.9\n-21.79\n19.9261\n-4.0\n-24.05\n16.7828\n-4.0\n-21.79\nSep\n15.8000\n-3.9\n-24.81\n21.1823\n-5.9\n-28.56\n17.6108\n-4.7\n-25.46\nOct\n16.3000\n-3.1\n-27.12\n20.9700\n1.0\n-27.83\n17.6992\n-0.5\n-25.84\nNov\n15.2700\n6.7\n-22.20\n19.3592\n8.3\n-21.83\n16.1291\n9.7\n-18.62\nDec\n14.7000\n3.9\n-19.18\n18.4008\n5.2\n-17.76\n15.2141\n6.0\n-13.72\n2025\nJan\n15.3001\n-3.9\n-3.92\n19.0003\n-3.2\n-3.16\n15.9012\n-4.3\n-4.32\nFeb\n15.5300\n-1.5\n-5.34\n19.5484\n-2.8\n-5.87\n16.1524\n-1.6\n-5.81\nMar\n15.5300\n0.0\n-5.34\n20.0951\n-2.7\n-8.43\n16.8068\n-3.9\n-9.48\nApr\n14.1500\n9.8\n3.89\n18.8769\n6.5\n-2.52\n16.0640\n4.6\n-5.29\nMay\n10.2800\n37.6\n43.00\n13.8529\n36.3\n32.83\n11.6675\n37.7\n30.40\nJune\n10.3100\n-0.3\n42.58\n14.1252\n-1.9\n30.27\n12.1138\n-3.7\n25.59\nMonth\n2021=100\nMonthly CHG(%)\nYear-to-Date (%)\nFXTWI\n TWI\nFXTWI\n TWI FXTWI\n TWI\n2024\nJan-24\n48.36\n52.70\n-1.15\n0.30\n-1.15\n0.30\nFeb-24\n46.71\n50.96\n-3.54\n-3.42\n-4.73\n-3.11\nMar-24\n45.22\n49.38\n-3.30\n-3.20\n-8.18\n-6.41\nApr-24\n43.91\n48.38\n-2.97\n-2.06\n-11.40\n-8.60\nMay-24\n41.18\n44.77\n-6.63\n-8.05\n-18.78\n-17.35\nJun-24\n39.94\n43.83\n-3.11\n-2.16\n-22.48\n-19.88\nJul-24\n39.05\n42.49\n-2.28\n-3.14\n-25.27\n-23.65\nAug-24\n38.23\n40.96\n-2.14\n-3.76\n-27.95\n-28.29\nSep-24\n36.72\n39.07\n-4.12\n-4.82\n-33.23\n-34.47\nOct-24\n35.68\n38.67\n-2.91\n-1.03\n-37.10\n-35.86\nNov-24\n38.18\n42.26\n6.55\n8.49\n-28.12\n-24.33\nDec-24\n39.74\n44.70\n3.93\n5.46\n-23.09\n-17.54\n2025\nJan-25\n38.19\n42.96\n-4.07\n-4.07\n-4.07\n-4.07\nFeb-25\n37.61\n42.23\n-1.54\n-1.73\n-5.67\n-5.87\nMar-25\n37.47\n40.78\n-0.38\n-3.54\n-6.07\n-9.61\nApr-25\n40.95\n43.06\n8.50\n5.28\n2.95\n-3.82\nMay-25\n56.35\n59.15\n27.33\n27.20\n29.47\n24.42\nJun-25\n55.99\n57.15\n-0.63\n-3.49\n29.03\n21.78\n \n7 \n \nPUBLIC \nTable 1.5: Real Bilateral Exchange Rate \n \nSource: Bank of Ghana Staff Calculations \n \nThe cedi appreciated by 23.2 percent, and 30.0 percent, in real trade weighted terms, and real forex \ntransaction weighted terms, on a year-to-date basis in June 2025. This compares with depreciations of \n8.4 percent, and 11.1 percent, respectively, in real trade weighted terms and forex transaction weighted \nterms for the same period in 2024. \n \n \nTable 1.6: Real Effective Exchange Rate for Major Trade Partners \n \nSource: Bank of Ghana Staff Calculations \n \n \n3.0 Global Economic Outlook and Risks \nThe global outlook is becoming increasingly challenging, amid substantial trade barriers. Headline \ninflation has remained stickier than anticipated in some countries. Financial conditions remain \nrestrictive, reflecting still high policy rates and long-term bond yields. Risks to the outlook are tilted to \nthe downside. Growth could be hit by further bilateral tariff actions and retaliatory actions. \nConsequently, rising trade costs may add to inflationary pressures. These pressures may force central \nbanks to maintain restrictive policy stances for a while. As a result, financial conditions may remain \ntight in the near term. \n \nRER Index (Jan.2021=100) MONTHLY CHANGE (Index) Year-to-Date (%)\nMonth\nEUR\nGBP\nUSD\nEUR\nGBP\nUSD\nEUR\nGBP\nUSD\n2024\nJan-24\n98.89\n92.57\n87.94\n3.02\n1.57\n0.14\n3.02\n1.57\n0.14\nFeb-24\n96.51\n90.72\n85.73\n-2.46\n-2.03\n-2.58\n0.63\n-0.43\n-2.44\nMar-24\n93.63\n88.07\n83.15\n-3.08\n-3.01\n-3.11\n-2.43\n-3.45\n-5.63\nApr-24\n93.00\n87.65\n81.79\n-0.68\n-0.59\n-1.66\n-3.13\n-4.06\n-7.38\nMay-24\n88.40\n82.92\n79.12\n-5.20\n-5.59\n-3.38\n-8.49\n-9.88\n-11.01\nJun-24\n89.04\n83.17\n78.84\n0.73\n0.30\n-0.34\n-7.70\n-9.54\n-11.39\nJul-24\n88.04\n81.90\n78.66\n-1.14\n-1.56\n-0.24\n-8.93\n-11.25\n-11.66\nAug-24\n83.90\n77.84\n76.56\n-4.93\n-5.21\n-2.74\n-14.30\n-17.05\n-14.71\nSep-24\n82.36\n75.56\n75.54\n-1.89\n-3.02\n-1.35\n-16.44\n-20.59\n-16.26\nOct-24\n82.09\n76.12\n73.76\n-0.33\n0.74\n-2.41\n-16.82\n-19.69\n-19.07\nNov-24\n92.79\n84.37\n80.80\n11.53\n9.77\n8.71\n-3.36\n-8.00\n-8.70\nDec-24\n99.88\n90.44\n85.41\n7.10\n6.72\n5.40\n3.98\n-0.74\n-2.82\n2025\nJan-25\n97.81\n89.38\n82.94\n-2.12\n-1.18\n-2.98\n-2.12\n-1.18\n-2.98\nFeb-25\n97.04\n87.64\n82.41\n-0.75\n-1.99\n-0.64\n-2.88\n-3.20\n-3.64\nMar-25\n92.78\n85.11\n82.42\n-4.64\n-2.97\n0.01\n-7.66\n-6.26\n-3.63\nApr-25\n97.47\n90.79\n90.92\n4.81\n6.25\n9.34\n-2.47\n0.39\n6.06\nMay-25\n134.99\n123.62\n125.81\n27.79\n26.55\n27.73\n26.01\n26.84\n32.11\nJun-25\n127.62\n118.89\n123.48\n-5.77\n-3.98\n-1.89\n21.74\n23.93\n30.83\nMonth\nINDEX (2021=100)\nMONTHLY CHG\nYear-to-Date (%)\nRFXTWI\nRTWI\nRFXTWI\nRTWI\nRFXTWI\nRTWI\n2024\nJan-24\n88.83\n96.79\n0.39\n2.51\n0.39\n2.51\nFeb-24\n86.63\n94.48\n-2.54\n-2.44\n-2.14\n0.13\nMar-24\n84.01\n91.66\n-3.12\n-3.07\n-5.33\n-2.94\nApr-24\n82.71\n90.91\n-1.56\n-0.83\n-6.98\n-3.80\nMay-24\n79.87\n86.61\n-3.56\n-4.96\n-10.79\n-8.95\nJun-24\n79.67\n87.09\n-0.25\n0.55\n-11.06\n-8.35\nJul-24\n79.40\n86.18\n-0.34\n-1.06\n-11.44\n-9.50\nAug-24\n77.13\n82.34\n-2.95\n-4.65\n-14.73\n-14.59\nSep-24\n76.04\n80.81\n-1.43\n-1.90\n-16.37\n-16.77\nOct-24\n74.41\n80.39\n-2.19\n-0.51\n-18.91\n-17.37\nNov-24\n81.73\n90.33\n8.95\n11.00\n-8.27\n-4.46\nDec-24\n86.54\n96.97\n5.56\n6.84\n-2.24\n2.69\n2025\nJan-25\n84.13\n94.93\n-2.87\n-2.15\n-2.87\n-2.15\nFeb-25\n83.56\n94.13\n-0.68\n-0.84\n-3.57\n-3.01\nMar-25\n83.23\n90.64\n-0.40\n-3.86\n-3.98\n-6.98\nApr-25\n91.40\n95.97\n8.94\n5.56\n5.31\n-1.04\nMay-25\n126.44\n132.70\n27.71\n27.68\n31.55\n26.93\nJun-25\n123.69\n126.28\n-2.22\n-5.09\n30.03\n23.21\nRTWI and FXRTWI\n \n8 \n \nPUBLIC \n2. External Sector Developments \n \n2.0 Highlights \nThe external sector maintained a strong performance in the first half of the year, posting a record \ncurrent account surplus of US$3.44 billion, driven by increased gold export earnings and improved \ncocoa receipts. The strong current account surplus, coupled with the surplus in the capital account, \ncontributed to a significant build-up in international reserves, reaching a gross level of US$11.12 \nbillion, equivalent to 4.8 months of import cover, in the first half of 2025. \n \n \n2.1 Commodity Price Trends \nOn the international commodities market, prices of Ghana’s major export commodities traded mixed. \nCocoa futures averaged US$9,155.10 per tonne in June 2025, recording a 5.4 percent fall compared to \nthe previous month, driven mainly by expectation of larger harvest in the West Africa cocoa growing \nregion. Compared with the same period last year, cocoa prices recorded a marginal increase of 1.5 \npercent primarily due to the adverse weather conditions last year which have offset the softening in \nprices from the improved production this year. \n \nOn the other hand, crude oil prices increased by 9.6 percent to close at an average price of US$69.84 \nper barrel in June 2025, mainly due to fears of curtailed oil supplies from the heightened security risks \nemanating from tensions between Israel and Iran. Compared to a year earlier, crude oil prices slumped \nby 15.9 percent, mainly due to weak demand from China. \n \nGold prices continued to soar, reaching a record average price of US$3,351.59 per fine ounce in June \n2025, reflecting an increase of 1.9 percent over the previous month. The surge in gold prices was driven \nby the geopolitical risks and the economic uncertainty associated with the ongoing trade war, which \nfueled investor demand for safe-haven assets. Relative to the same period last year, gold prices spiked \nby 44.1 percent in June 2025, from US$2,325.34 in June 2024. \n \n2.1.1 Commodity Price Index \nThe overall weighted average price index of the three major export commodities of Ghana (cocoa, gold, \nand crude oil) increased marginally in June 2025 to 235.85, from 235.11 in the previous month, \nrepresenting an uptick of 0.3 percent. The increase was on account of increases in both the gold and \ncrude oil sub-indices, which went up by 1.9 percent and 9.7 percent, respectively, while the cocoa sub-\nindex softened by 5.4 percent during the period under review. On a year-on-year basis, the composite \ncommodity price index increased by 19.9 percent, stemming from the strong 44.1 percent increase in \nthe gold price sub-index and a 1.5 percent increase in the cocoa sub-index. The crude oil price sub-\nindex, however, showed a decline of 15.9 percent during the review period. \n \n \n \n \n \n \n \n \n \n \n9 \n \nPUBLIC \n \n \n2.2 Trade Balance \nTrade balance for the first half of the year showed a significant surplus of US$5.57 billion, representing \na sharp increase over the US$1.37 billion recorded in the comparative period in 2024. The improved \ntrade surplus resulted from a larger increase in exports than imports. \n \nThe value of exports surged to US$13.80 billion in June 2025, from US$8.87 billion in the same period \nin 2024, driven mainly by gold exports and supported by cocoa exports. The value of gold exports went \nup by 80.2 percent to US$8.39 billion, from US$4.66 billion in June 2024, on account of increases in \nboth the volume and price of gold. The volume of gold exports increased by 26.3 percent to 2.81 million \nfine ounces, on the back of increased output from the responsible and regulated small-scale gold mines \nfollowing the operationalization of GoldBod, together with the sustained output of the large-scale \nmines. The average price for gold also increased by 42.6 percent to US$2,980.90 per fine ounce in June \n2025, compared to US$2,090.40 in June 2024, largely due to global economic uncertainty and \ngeopolitical tensions. Receipts from cocoa exports, both beans and products, increased sharply to \nUS$2.17 billion during the first half of 2025, from US$0.76 billion in the same period in 2024, driven \nby both higher volumes of exports and prices. Improved weather conditions supported the increased \ncocoa production during the period. \n \nCrude oil exports, however, dropped by 31.1 percent to US$1.36 billion in the first half of the year due \nto reduced volumes of exports and decline in prices. The volume of crude oil exports fell by 20.5 percent \nto 18.94 million barrels as of June 2025, from 23.83 million barrels during the same period last year. \nThis was partly on account of a shut down in the Jubilee field for routine maintenance works during the \nfirst quarter of the year. The average price of crude oil for the period showed a decline of 13.3 percent \nto US$72.1 per barrel, from US$83.1 per barrel in June 2024. Prices were low due to weak global \ndemand, particularly from China, and OPEC’s decision to ramp up production. Other exports, including \nSource: Reuters\nSource: Reuters\nSource: Reuters\nSource: BoG Staff Compilation\n \n10 \n \nPUBLIC \nnon-traditional exports, increased by 27.9 percent to US$1.88 billion, from US$1.47 billion during the \nsame review period. \n \nTotal imports, on the other hand, recorded an increase of 9.7 percent to US$8.23 billion during the first \nhalf of 2025, from US$7.50 billion in the corresponding period of 2024, on account of increases in both \noil and non-oil imports. Oil imports increased by 6.6 percent to US$2.59 billion in June 2025 from \nUS$2.42 billion in June 2024, while non-oil imports increased to US$5.64 billion from US$5.07 billion \nduring the same reference period. \n \n2.3 Current Account \nThe current account recorded an impressive surplus of US$3.44 billion in the first half of 2025, \nrepresenting a sharp increase over the surplus of US$283.11 million recorded during the same period \nin 2024. The higher current account surplus came on the back of higher cocoa and gold receipts. Net \npayment for services, however, increased to US$2.64 billion, driven largely by freight and insurance, \ntrade-related services, financial services and travel. Income payments to non-residents amounted to \nUS$2.38 billion on a net basis, driven by private sector payments and interest payments on government \nexternal debt. Private remittance flows increased by 8.2 percent to US$3.93 billion in June 2025 from \nUS$3.63 billion during the same time in 2024. \n \n2.4 Capital and Financial Accounts \nThe capital account recorded net transfers of US$50.5 million, reflecting mainly project grants. The \nsum of the surpluses in the current and capital accounts amounted to US$3.49 billion, putting the \ncountry in a net lending position with the rest of the world. Consequently, there was net acquisition of \nfinancial assets in the financial account amounting to US$3.79 billion, significantly higher than the \nUS$438.4 million recorded in the same period of 2024. Out of this, other investments were US$2.4 \nbillion, largely driven by increased currency and deposits in the nostro accounts of commercial banks \nas well as trade credit and advances. The economy attracted net direct investments of US$921.1 million \nin June 2025 from US$828.2 million in June 2024 and lower net portfolio inflows of US$55.2 million, \nfrom US$546.2 million during the same review period. Reserve assets of the Bank of Ghana improved \nsignificantly to US$2.2 billion from US$588.5 million. \n \n2.5 International Reserves \nAt the end of June 2025, the stock of Gross International Reserves (GIR) stood at US$11.12 billion, \nenough to provide cover for 4.8 months of import of goods and services. This compares with the end-\nDecember 2024 GIR of US$8.98 billion (equivalent to 4 months of imports cover). The program Net \nInternational Reserves (NIR) recorded a build-up of US$1.65 billion to US$3.53 billion in June 2025, \nagainst a target buildup of US$493 million for the same period. \n \n2.6 External Sector Outlook \nOverall, the external sector outlook remains broadly positive, notwithstanding the increasingly \nchallenging global economy and geopolitical tensions. The prices of Ghana’s major export commodities \nprices are forecast to remain largely favourable. Gold prices are expected to remain above $3,000 per \nfine ounce in the second half of the year, while the cocoa market remains upbeat about a boost in \nGhana’s crop in the upcoming season if weather patterns remain favourable. Crude oil prices are \nprojected to average lower than $70 per barrel, on the back of low demand, although Brent may find \nsupport from risk premia of the continuous geopolitical conflicts. These forecasts will bode well for the \nperformance of the external sector in the next half of the year. The robust external sector outlook \n \n11 \n \nPUBLIC \ncoupled with the improved macroeconomic environment are expected to provide adequate support to \nsustain the macroeconomic gains and keep the external sector on a strong footing moving forward. \n \nTable 2.1: Trade Balance (US$ million) \n \nSource: Bank of Ghana \n \n Table 1\n2023\n2024\n2025\nAbs Y/Y\nRel Y/Y\n Jan - Jun \n Jan - Jun \n Jan - Jun \nChg\nChg\nTrade Balance\n1,307.0\n1,367.9\n5,573.0\n4,205.1\n307.4\nTrade Bal (% GDP)\n1.6\n1.6\n6.4\nTotal Exports\n7,845.4\n8,868.7\n13,798.9\n4,930.2\n55.6\nGold ( $'M)\n3,149.6\n4,655.3\n8,387.4\n3,732.1\n80.2\n Volume (fine ounces)\n1,716,175.6\n2,227,015.6\n2,813,741.0\n586,725.3\n26.3\n Unit Price ($/fine ounce)\n1,835.2\n2,090.4\n2,980.9\n890.5\n42.6\nCocoa Beans ( $'M)\n1,031.6\n406.2\n1,297.4\n891.2\n219.4\n Volume (tonnes)\n420,734.7\n150,747.0\n244,156.7\n93,409.7\n62.0\n Unit Price ($/tonne)\n2,451.9\n2,694.7\n5,313.9\n2,619.2\n97.2\nCocoa Products ( $'M)\n421.9\n356.3\n870.1\n513.8\n144.2\n Volume (tonnes)\n129,309.5\n90,245.9\n118,317.4\n28,071.6\n31.1\n Unit Price ($/tonne)\n3,262.8\n3,947.9\n7,353.6\n3,405.7\n86.3\nCrude Oil ( $'M)\n1,659.5\n1,981.2\n1,364.7\n-616.5\n-31.1\n Volume (barrels)\n20,960,643.0\n23,827,026.0\n18,938,925.3\n-4,888,100.7\n-20.5\n Unit Price ($/bbl)\n79.2\n83.1\n72.1\n-11.1\n-13.3\nOther Exports\n1,582.7\n1,469.7\n1,879.3\n409.6\n27.9\no/w: Non-Tradional Exports\n1,210.9\n1,109.5\n1,473.2\n363.6\n32.8\nTotal Import\n6,538.4\n7,500.8\n8,225.9\n725.1\n9.7\n Non-Oil\n4,369.9\n5,074.2\n5,640.3\n566.1\n11.2\n Oil and Gas\n2,168.6\n2,426.6\n2,585.6\n159.0\n6.6\n of which: Products\n1,949.8\n2,094.7\n2,416.3\n321.6\n15.4\nGas\n109.0\n111.8\n120.8\n9.0\n8.1\nCrude Oil \n109.8\n220.1\n48.4\n-171.6\n-78.0\n \n12 \n \nPUBLIC \n3. Real Sector Developments \n \n3.0 Highlights \nGhana's economy demonstrated robust growth in the first quarter of 2025. Beyond the first quarter, the \nlatest high frequency real sector indicators point to a sustained pickup in economic activity in May \n2025. Consumer and business confidence also increased significantly in line with improving \nmacroeconomic conditions. \n \n3.1 Economic Growth \nThe latest data from the Ghana Statistical Service showed that real GDP grew by 5.3 percent, compared \nwith 4.9 percent recorded in the corresponding quarter of 2024. A key factor of the strong growth \noutturn was the non-oil sector. Non-oil GDP growth was 6.8 percent, compared with 4.3 percent in the \nsame period of 2024. This indicates strong underlying momentum in the broader economy and a \ndiversification away from reliance on oil. The observed growth outturn was driven by the agricultural \nand services sectors, which grew by 6.6 percent, and 5.9 percent, respectively. \n \nFigure 3.1: Oil and Non-oil GDP Growth \n \nSource: GSS \n \n3.2 Trends in Real Sector Indicators \n \nConsumer Spending \nConsumer spending, proxied by domestic VAT collections and retail sales, posted a positive \nperformance in May 2025, compared with the corresponding period in 2024. Domestic VAT collections \nincreased by 30.1 percent on a year-on-year basis to GH¢1,772.60 million, from GH¢1,362.13 million. \nCumulatively, total domestic VAT for the first five months of 2025 went up by 33.6 percent to \nGH¢8,313.95 million, compared with GH¢6,221.21 million for the corresponding period of last year. \n \nRetail sales increased by 38.6 percent (year-on-year) to GH¢277.62 million in May 2025, from \nGH¢200.27 million recorded in the same period in 2024. On a month-on-month basis, retail sales \nimproved by 4.6 percent in May 2025, from GH¢265.46 million in the preceding month. In cumulative \nterms, retail sales for the first five months of 2025 went up by 35.7 percent. \n \n \n \n \n13 \n \nPUBLIC \nManufacturing Activities \nActivities in the manufacturing sub-sector, gauged by trends in the collection of direct taxes and private \nsector workers’ contributions to the Social Security and National Insurance Trust (SSNIT) Pension \nScheme (Tier-1), improved in May 2025. Total direct taxes collected increased by 34.0 percent (year-\non-year) to GH¢5,503.67 million in May 2025, relative to GH¢4,107.22 million recorded in a similar \nperiod in 2024. Cumulatively, total direct taxes collected for the first five months of 2025 went up by \n47.7 percent to GH¢32,772.67 million, from GH¢22,191.12 million for the same period in 2024. In \nterms of contributions of the various sub-tax categories, income tax (PAYE and self-employed) \naccounted for 49.4 percent, corporate tax accounted for 34.5 percent, while “Other Tax Sources” \ncontributed 16.1 percent. \n \nTotal private sector workers’ contribution to the SSNIT Pension Scheme (Tier-1) increased by 10.7 \npercent in year-on-year terms to GH¢521.33 million in May 2025, from GH¢470.92 million collected \nduring the corresponding period in 2024. Cumulatively, for the first five months of 2025, the \ncontribution grew by 24.6 percent to GH¢2,458.61 million, relative to GH¢1,973.34 million recorded \nin the same period in 2024. \n \nConstruction Sector Activities \nActivity in the construction sub-sector, proxied by the volume of cement sales, improved by 8.5 percent \n(year-on-year) in May 2025 to 255,063.29 tonnes, up from 235,050.55 tonnes recorded a year ago. \nHowever, on a month-on-month basis, total cement sales dipped by 3.2 percent in May 2025 compared \nwith the 263,623.46 tonnes recorded in April 2025. Cumulatively, cement sales for the first five months \nof 2025 improved by 8.2 percent to 1,225,395.86 tonnes, from 1,132,654.32 tonnes for the same period \nof 2024. The relative improvement in total cement sales, year-on-year, was due to an uptick in \nconstruction activities during the review period. \n \nVehicle Registration \nTransport sector activities, gauged by new vehicle registrations by the Driver and Vehicle Licensing \nAuthority (DVLA), improved by 24.5 percent to 20,202 in May 2025, from 16,220 vehicles registered \nduring the corresponding period of 2024. Cumulatively, vehicles registered by the DVLA within the \nfirst five months of 2025 increased by 29.4 percent to 108,542 from 83,878 recorded a year ago. \n \nIndustrial Consumption of Electricity \nIndustrial consumption of electricity declined by 3.6 percent in May 2025 to 285.05 gigawatts, as \nagainst 295.71 gigawatts recorded for the corresponding period in 2024. In cumulative terms, electricity \nconsumed by industries for the first five months of 2025 remained largely unchanged at 1,430.96 \ngigawatts from 1,429.28 gigawatts for the corresponding period a year ago. \n \nPassenger Arrivals \nPassenger arrivals improved by 10.7 percent in year-on-year terms to 108,665 in May 2025, up from \n98,205 arrivals recorded a year ago. Similarly, compared to April 2025, passenger arrivals went up by \n11.0 percent. Cumulatively, for the first five months of 2025, there were 501,961 arrivals recorded at \nthe international airport and the land borders, compared with 497,048 for the corresponding period in \n2024, representing a marginal growth of 1.0 percent. \n \n \n \n \n14 \n \nPUBLIC \nPorts and Harbours Activity \nInternational trade at the country’s two main harbours (Tema and Takoradi), as measured by laden \ncontainer traffic for inbound and outbound containers, improved during the period under review. Total \ncontainer traffic increased by 32.6 percent, year-on-year, to 79,059 in May 2025, up from 59,639 for a \nsimilar period in 2024. In cumulative terms, total container traffic for the first five months of 2025 went \nup by 23.5 percent to 351,690 compared with 284,745 for the corresponding period of last year. \n \n \n3.3 Labour Market Activity \n \nPrivate Sector Pension Contributors \nTotal number of private sector SSNIT contributors, which partially gauges employment conditions, \nimproved marginally by 2.1 percent to 1,065,925 in May 2025, compared with 1,044,111 for the same \nperiod in 2024. On a month-on-month basis, total number of private sector SSNIT contributors \nremained largely unchanged from the 1,067,531 individuals recorded in April 2025. \n \nAdvertised Jobs \nThe number of jobs advertised in selected print and online media, which partially gauges labour demand \nin the economy, decreased in June 2025 relative to what was observed in the corresponding period a \nyear ago. In total, 2,502 job adverts were recorded as compared with 2,968 for the same period in 2024, \nindicating a decline of 15.7 percent (year-on-year). Similarly, on a month-on-month basis, the number \nof job vacancies in June 2025 dipped by 18.4 percent from the 3,066 jobs advertised in May 2025. \nCumulatively, for the first half of 2025, the total number of advertised jobs went up by 7.7 percent to \n18,604 from 17,278 recorded during the same period in 2024. \n \n3.4 Composite Index of Economic Activity \nThe Bank’s real Composite Index of Economic Activity (CIEA) recorded an annual growth of 4.4 \npercent in May 2025, compared to a growth of 3.4 percent for the corresponding period of 2024. \nInternational trade activities, consumption of goods and services by households and firms, construction \nactivities and tourist arrivals contributed to the improvement in economic activity during the period. \n \n3.5 Consumer and Business Surveys \nThe latest confidence surveys conducted in June 2025 showed significant improvement in both \nconsumer and business confidence. The Consumer Confidence Index markedly improved to 119.2 in \nJune 2025, the highest recorded level of confidence, from 103.6 in April 2025. This was on account of \nsubstantial easing of inflationary pressures, which in turn led to strong optimism about future economic \nconditions. The Business Confidence Index also increased to 105.5 from 102.2 in the same comparative \nperiod as firms met their short-term targets and expressed positive sentiments about company and \nindustry prospects, in line with improving macroeconomic conditions. Results from the confidence \nsurveys were aligned with the observed trend in Ghana’s Purchasing Managers’ Index (PMI), which \nalso signalled an improvement in business conditions in June 2025, albeit at a slower pace than in May \n2025. The PMI remained above the 50.0 no-change mark at 51.3 in June 2025, down from 53.6 in the \nprevious month. \n \n \n \n \n \n15 \n \nPUBLIC \n \nFigure 3.1: High Frequency Economic Indicators \n \n \n \nSources: Bank of Ghana, Various Stakeholders\n...Domestic VAT collections and retail sales improved in May 2025 compared \nto April 2025...\n...Labour hiring conditions, proxied by the number of private sector \nworkers contributing to SSNIT, remained largely unchanged...\n...Labour market conditions improved in May 2025 relative to April 2025...\n...Construction activities, proxied by cement sales, declined in May 2025 \ncompared to April 2025...\n...Port activity increased in May 2025 compared to the previous month...\n...Tourist arrivals increased in May 2025 compared to April 2025... \n150\n170\n190\n210\n230\n250\n270\nMay-23\nJul-23\nSep-23\nNov-23\nJan-24\nMar-24\nMay-24\nJul-24\nSep-24\nNov-24\nJan-25\nMar-25\nMay-25\nCement Sales\n35\n40\n45\n50\n55\n60\n65\n70\n75\n80\n85\nMay-23\nJul-23\nSep-23\nNov-23\nJan-24\nMar-24\nMay-24\nJul-24\nSep-24\nNov-24\nJan-25\nMar-25\nMay-25\nThousands\nPort Activity (Container Traffic)\n0\n20\n40\n60\n80\n100\n120\n140\nMay-23\nJul-23\nSep-23\nNov-23\nJan-24\nMar-24\nMay-24\nJul-24\nSep-24\nNov-24\nJan-25\nMar-25\nMay-25\nThousands\nTourist Arrivals\n600\n700\n800\n900\n1000\n1100\n1200\nMay-23\nJul-23\nSep-23\nNov-23\nJan-24\nMar-24\nMay-24\nJul-24\nSep-24\nNov-24\nJan-25\nMar-25\nMay-25\nThousands\nNumber of Private Sector Contributors to SSNIT\nThousands, tons\n 200.00\n 400.00\n 600.00\n 800.00\n 1,000.00\n 1,200.00\n 1,400.00\n 1,600.00\n 1,800.00\n 2,000.00\n 2,200.00\n 40.00\n 90.00\n 140.00\n 190.00\n 240.00\n 290.00\n 340.00\n 390.00\n 440.00\n 490.00\nMay-23\nJul-23\nSep-23\nNov-23\nJan-24\nMar-24\nMay-24\nJul-24\nSep-24\nNov-24\nJan-25\nMar-25\nMay-25\nMillion, GHC\nMillion, GHC\nRetail Sales and Domestic VAT collection\nRetail Sales, Left\nDomestic VAT\n100\n150\n200\n250\n300\n350\n400\n450\n500\n550\n600\nMay-23\nJul-23\nSep-23\nNov-23\nJan-24\nMar-24\nMay-24\nJul-24\nSep-24\nNov-24\nJan-25\nMar-25\nMay-25\nMillion GHC\nSSNIT Contributions from Private Sector\nPanel 1:\nGhana's Leading Indicators of Economic Activity\n \n16 \n \nPUBLIC \n \n \n \n \nSource: Bank of Ghana, Various Stakeholders\n...Commercial banks' credit to the private sector declined in May 2025 relative \nto the pevious month...\n...Industrial activity, proxied by industrial consumption of electricity, \nremained largely unchanged...\n...Exports and Imports increased in May 2025 compared to April 2025...\n600\n800\n1000\n1200\n1400\n1600\n1800\n2000\n2200\n2400\n2600\nMay-23\nJul-23\nSep-23\nNov-23\nJan-24\nMar-24\nMay-24\nJul-24\nSep-24\nNov-24\nJan-25\nMar-25\nMay-25\nMillion, USD\nImports\nExports\nImports and Exports\n220\n240\n260\n280\n300\n320\n340\nMay-23\nJul-23\nSep-23\nNov-23\nJan-24\nMar-24\nMay-24\nJul-24\nSep-24\nNov-24\nJan-25\nMar-25\nMay-25\nGWh\nIndustrial Consumption of Electricity\n30\n40\n50\n60\n70\n80\n90\n100\nMay-23\nJul-23\nSep-23\nNov-23\nJan-24\nMar-24\nMay-24\nJul-24\nSep-24\nNov-24\nJan-25\nMar-25\nMay-25\nBillion, GHC\nDMB's Credit to Private Sector\n-6\n-4\n-2\n0\n2\n4\n6\n8\n10\nMay-23\nJul-23\nSep-23\nNov-23\nJan-24\nMar-24\nMay-24\nJul-24\nSep-24\nNov-24\nJan-25\nMar-25\nMay-25\nPercent, y-o-y\nReal CIEA\n-8\n-4\n0\n4\n8\n12\nMay-24\nJun-24\nJul-24\nAug-24\nSep-24\nOct-24\nNov-24\nDec-24\nJan-25\nFeb-25\nMar-25\nApr-25\nMay-25\nPercent, y-o-y\nCement Sales (Tons)\nPort Activity\nSSNIT Contr by Pte Sector\nExports\nIndustrial Cons of Electricity\nDMB's Credit to Pte Sector\nImports\nTourist Arrivals\nDom VAT\nReal CIEA growth (%)\nContribution to Real CIEA growth\n500\n1000\n1500\n2000\n2500\n3000\n3500\n4000\n4500\n5000\nJun-23\nAug-23\nOct-23\nDec-23\nFeb-24\nApr-24\nJun-24\nAug-24\nOct-24\nDec-24\nFeb-25\nApr-25\nJun-25\nJob Adverts\nPanel 2:\nGhana's Leading Indicators of Economic Activity\n...On a year-on-year basis, the real CIEA grew by 4.4 percent in May 2025, \ncompared with a growth of 3.4 percent in May 2024...\n...The growth in the real CIEA was mainly driven by a pick-up in Port Activity, \nExports, Imports, Domestic VAT, Cement Sales and Tourist Arrivals...\n...Demand for labour, proxied by the number of job adverts (in print and \nonline media), decreased in June 2025...\nNumber of advertised jobs\n \n17 \n \nPUBLIC \n \n \n \n \n \n \nSource: Bank of Ghana, Various Stakeholders\n...Business Confidence improved as firms met their short-term targets and \nexpressed positive sentiments about company and industry prospects in line \nwith improving macroeconomic conditions...\n...Vehicle registration increased in May 2025 compared to the month before...\n...Consumer Confidence improved on account of easing inflationary \npressures and optimism about future economic conditions...\n0\n5000\n10000\n15000\n20000\n25000\n30000\n35000\nMay-23\nJul-23\nSep-23\nNov-23\nJan-24\nMar-24\nMay-24\nJul-24\nSep-24\nNov-24\nJan-25\nMar-25\nMay-25\nVehicle Registration\n105.5\n40\n50\n60\n70\n80\n90\n100\n110\n120\nJun-23\nAug-23\nOct-23\nDec-23\nFeb-24\nApr-24\nJun-24\nAug-24\nOct-24\nDec-24\nFeb-25\nApr-25\nJun-25\nIndex\nBusiness Confidence Index\n119.2\n40\n50\n60\n70\n80\n90\n100\n110\n120\n130\nJun-23\nAug-23\nOct-23\nDec-23\nFeb-24\nApr-24\nJun-24\nAug-24\nOct-24\nDec-24\nFeb-25\nApr-25\nJun-25\nIndex\nConsumer Confidence Index\n0\n2\n4\n6\n8\n10\n12\n14\n16\nMay-23\nJul-23\nSep-23\nNov-23\nJan-24\nMar-24\nMay-24\nJul-24\nSep-24\nNov-24\nJan-25\nMar-25\nMay-25\nBillion, GHC\nDomestic taxes, Direct\n...Domestic tax collection decreased in May 2025 compared to April 2025...\n2.4 \n6.6 \n6.7 \n3.4 \n4.7 \n5.9 \n-8.0\n-6.0\n-4.0\n-2.0\n0.0\n2.0\n4.0\n6.0\n8.0\n10.0\n12.0\n14.0\n2023Q3\n2023Q4\n2024Q1\n2024Q2\n2024Q3\n2024Q4\n2025Q1\nPercent\nAgricuture\nIndustry\nServices\nAnnual sectoral real GDP growth rate, y/y \n4.9\n5.3\n4.3\n6.8\n-6.0\n-4.0\n-2.0\n0.0\n2.0\n4.0\n6.0\n8.0\n10.0\n2023Q3\n2023Q4\n2024Q1\n2024Q2\n2024Q3\n2024Q4\n2025Q1\nPercent\nOil GDP\nNon-Oil GDP\nAnnual real GDP growth rate, y/y \n...Real Oil and Non-Oil GDP grew by 5.3 percent and 6.8 percent respectively \nin 2025Q1, compared with growth rates of 4.9 percent and 4.3 percent \nrespectively in 2024Q1... \n...The Agriculture and Services sectors drove growth in 2025Q1, recording growth \nrates of 6.6 percent and 5.9 percent respectively, relative to growth rates of 2.4 \npercent and 4.7 percent in 2024Q1 respectively...\nPanel 3:\nGhana's Leading Indicators of Economic Activity\nNumber of vehicles\n \n18 \n \nPUBLIC \n4. Monetary and Financial Developments \n \n4.0 Highlights \nGrowth in monetary aggregates remained subdued during the first half of the year, reflecting tight \nmonetary conditions consistent with policy efforts to sustain the disinflation process. There was \nsignificant build-up in Net Foreign Assets (NFA), reflecting inflows from the domestic gold purchase \nprogramme, remittances, forex purchases from mining firms, and multilateral disbursements. This \nliquidity build-up was, however, contained through sterilization efforts during the period. Credit slowed \nduring the period under review, reflecting, among others, banks preference for Bank of Ghana bills, \nwhich had higher returns. Money market rates broadly trended downwards at the short-end of the \nprimary market, on year-on-year basis, while interest rates on longer-dated instruments remained \nstable. The GSE Composite Index (GSE-CI) recorded significant gains, year-on-year, in June 2025 \nrelative to the corresponding period last year. The impressive performance of the GSE-CI was \nunderpinned by improved investor appetite, driven by significant recovery in the profitability of listed \nfinancial institutions and improved liquidity on that segment of the market. \n \n4.1 Developments in Monetary Aggregates \n \nMoney Supply \nDevelopments in monetary aggregates for June 2025 showed a deceleration in the pace of growth in \nbroad money supply (M2+), driven by contractions in both the Net Domestic Assets (NDA) and the Net \nForeign Assets (NFA). Annual growth in M2+ declined to 15.64 percent in June 2025, relative to 34.07 \npercent in the corresponding period of 2024. The contribution of NFA to the growth in M2+ decreased \nto 9.50 percent from 23.11 percent, mainly due to the appreciation of the domestic currency. Similarly, \nthe contribution of NDA to the growth in M2+ decreased to 6.14 percent from 10.96 percent over the \nsame comparative period, induced by the tight monetary policy stance and effective liquidity \nmanagement. \n \n \n \nSources: Bank of Ghana \n \n \n \n-40.00\n-20.00\n0.00\n20.00\n40.00\n60.00\n80.00\nper cent\nFigure 4.1a: M2+ Growth and its Sources (% \ncontributions)\nNet Foreign Assets\nNDA\nTotal Liquidity (M2+)\n-40.00\n-20.00\n0.00\n20.00\n40.00\n60.00\n80.00\n100.00\nper cent\nFigure 4.1b: Banking Sector NDA and its Sources \n(% contributions)\n NCG\n Claims on Priv. Sect. (Incl.\nPE's)\n BOG OMO Steril. Acc.\n OIN\n \n19 \n \nPUBLIC \n \n \nSource: Bank of Ghana \n \nAccordingly, the decline in the contribution of the NDA to the growth of M2+ was mainly driven by \ncontractions in the Net Claims on Government (NCG) and increased sterilization through the issuance \nof BOG bills. This was moderated by increases in Claims on Private and Public Sector and expansion \nin the Other Items (Net) (OIN). \n \nAnalysis of the components of M2+ showed that the moderation in the growth in M2+ reflected in \ndecreased growth in demand deposits, time deposits, and foreign currency deposits in June 2025 relative \nto same period in 2024. Growth in saving deposits and currency with the public, however, increased \nsignificantly over the same comparative period . \n \n4.2 Reserve Money \nGrowth in Reserve Money (RM) moderated significantly in June 2025, mainly induced by a contraction \nin the NDA, reflecting increased sterilization and decline in net claims on Government. Growth in the \nNFA also declined considerably, largely on the back of delayed inflows from the Gold for Reserve \n(G4R) Programme. Annual growth in reserve money declined to 1.95 percent in June 2025, from a \ngrowth of 77.37 percent recorded in the corresponding period of 2024. \n \nThe NDA of the Central Bank declined due to a contraction in Net Claims on Government (NCG) and \nClaims on Deposit Money Banks (DMBs), as well as increased Open Market Operations (OMO). The \ncontribution of NDA to the growth in RM decreased to negative 29.32 percent in June 2025 compared \nto 18.33 percent recorded in June 2024. Similarly, the contribution of the NFA to the growth in RM \ndecreased to 31.27 percent, relative to 59.04 percent over the same comparative period. \n \n-2.00\n8.00\n18.00\n28.00\n38.00\n48.00\n58.00\nper cent\nFigure 4.2: M2+ growth and its component (% contributions)\nCurr.\nDem. Dep\nSav and Time Dep.\nFCDs\nTotal Liquidity (M2+)\n \n20 \n \nPUBLIC \n \n \nSource: Bank of Ghana \n \n \n4.3 Deposit Money Banks Credit Developments \nDeposit Money Banks’ (DMBs’) total credit to the private sector and public institutions dipped to \nGH¢4,685.30 million (5.55%) in June 2025 from GH¢11,353.44 million (15.53%) recorded in June \n2024. The decrease in credit flows was largely due a decline in credit to the public sector. Credit flows \nto the private sector declined to GH¢6,690.70 million (8.57%) in June 2025 from GH¢11,690.77 million \n(17.61%) recorded in the corresponding period of 2024. The decreased flow of credit to the private \nsector was on the back of a shift to the purchase of both Government and Bank of Ghana securities by \nthe banks. \nPrivate sector credit accounted for 95.05 percent of the flow in total outstanding credit in June 2025, \nrelative to 92.40 percent recorded in the corresponding period of 2024. The top five sectors with \nsignificant share of credit flows are: services (76.53%); commerce and finance (17.65%); electricity, \ngas and water (6.52%); manufacturing (4.55%); and agriculture, forestry and fisheries (4.12%) (Chart \n4a). Outstanding credit to private sector at the end of June 2025 was GH¢84,752.43 million, compared \nwith GH¢78,061.73 million recorded in June 2024. \nIn real terms, however, private sector credit contracted by 4.48 percent relative to 4.18 percent \ncontraction, over the same comparative period. Growth in real private sector credit declined slightly \nbelow its trend during the review period. \n \n \n \n \n \n-60.0\n-40.0\n-20.0\n0.0\n20.0\n40.0\n60.0\n80.0\n100.0\n120.0\nPer cent\nFigure 4.3a: RM Growth and Contribution from NFA \nand NDA\nNDA\nNFA\n-100.0\n-50.0\n0.0\n50.0\n100.0\n150.0\n200.0\nFigure 4.3b: BOG NDA and Its Sources (% \nContributions)\nNCG\nNC_DMBs\nOMO Ster. A/c\nOIN\nNDA\n \n21 \n \nPUBLIC \n \n \nSource: Bank of Ghana \n \n4.4 Money Market Developments \nDevelopments in interest rates broadly showed downward trends at the short end of the primary market \non year-on-year basis, consistent with Government’s continued efforts to bring down rates in \npreparation for issuances on the bonds market. Interest rates on longer-dated instruments, however, \nremained stable. The 91-day, 182-day and 364-day Treasury bill rates decreased to 14.74 percent, 15.34 \npercent, and 15.76 percent, respectively, in June 2025, from 24.91 percent, 26.84 percent and 27.83 \npercent, respectively, in the corresponding period of 2024. Rates on the 2-year, 3-year, 5-year, 6-year, \n7-year, 10-year, 15-year, and 20-year bonds remained broadly stable due to the non-issuance of these \ninstruments during the review period. \n \nThe Interbank Weighted Average Rate (IWAR) decreased to 27.02 percent in June 2025 from 28.80 \npercent in June 2024. Similarly, the average lending rates of banks declined to 27.00 percent in June \n2025 from 31.10 percent, recorded in the corresponding period of 2024, reflecting the pass-through \neffect of declines in rates on the primary market. \n \n \n \nSource: Bank of Ghana \nFigure 4.4a: Sectoral Shares in Credit to the \nPrivate sector (%)\nJun-24\nJun-25\n-32.00\n-27.00\n-22.00\n-17.00\n-12.00\n-7.00\n-2.00\n3.00\n8.00\n13.00\nFigure 4.4b: Growth in Real Private Sector Credit \n(RGPSC) vs. Trend\nRGPSC\nTrend\n7.00\n12.00\n17.00\n22.00\n27.00\n32.00\n37.00\n42.00\n47.00\n52.00\nFigure 4.5a: MPR, Interbank, T-bill Rates and \nInflation \nMPR\n 91-Day T-bill\nrate\n Inter-Bank\nrate\nInflation\n10.00\n15.00\n20.00\n25.00\n30.00\n35.00\nFigure 4.5b: Yield Curve (YOY) \nJun-24\nJun-25\n \n22 \n \nPUBLIC \n \n \nSource: Bank of Ghana \n \n \n4.5 Stock Market Developments \nThe Ghana Stock Exchange Composite Index (GSE-CI) increased to 6248.48 points in June 2025 from \n3829.61 points recorded in the corresponding period of 2024. This translates into a year-on-year gain \nof 63.16 percent in June 2025 compared to a growth of 36.38 percent in June 2024. The robust \nperformance of the GSE-CI is underpinned by improved investor appetite, driven by significant \nrecovery in the profitability of listed financial institutions and improved liquidity on that segment of the \nmarket. The GSE-CI has been further boosted by the limited investment options on the domestic \nmarkets on account of the Domestic Debt Exchange Programme (DDEP). The main sectors that \ncontributed to the gains recorded by the GSE-CI were the ETFund, distribution, agriculture, and finance \nsectors. \n \nThe GSE-Financial Stocks Index (GSE-FSI) closed at 3376.01 points, reflecting a gain of 59.62 percent \ncompared to a gain of 25.01 percent, over the same comparative period. The gain in the GSE-FSI was \nmainly on the back of improved profitability of listed financial institutions, following initial losses \ninduced by the impact of the DDEP. \n \nTotal market capitalisation of the GSE at the end of June 2025 was GH¢137.29 billion representing a \nyear-on-year growth of 61.33 percent (GH¢52.19 billion), compared with a growth of 21.15 percent \n(GH¢14.86 billion) in June 2024. The increase in market capitalization was mainly driven by \nappreciation in share prices, underpinned by renewed investor confidence, particularly in the ETFund, \ndistribution, agriculture, and finance sectors. \n \nTable 4.1: Performance of Ghana Stock Exchange \n \nSource: Ghana Stock Exchange and Bank of Ghana Staff Calculations \n-30.00\n-20.00\n-10.00\n0.00\n10.00\n20.00\n30.00\n40.00\n50.00\npercent\nFigure 4.6: Real Interest Rates and Inflation\nReal MPR\nReal 91 Day T-bill Rate\nReal Interbank Rate\nReal Lending Rate\nReal Deposit Rate\n \n23 \n \nPUBLIC \n \n \n \nSource: Bank of Ghana \n \n \n4.6 Conclusion \nGrowth in monetary aggregates was largely constrained in the first half of the year, underpinned by the \ntight monetary policy stance and effective liquidity management. Growth in reserve money moderated \nsignificantly in June 2025, mainly induced by a contraction in the NDA, reflecting increased \nsterilization. Annual growth in credit to the private sector decreased in nominal terms, due to a shift in \nbanks preference to investments in Government and Bank of Ghana securities. In real terms credit to \nprivate sector contracted marginally. \n \nMoney market rates broadly trended downwards at the short-end of the primary market, on year-on-\nyear basis in preparation for future bond issuances; interest rates on longer-dated instruments, however, \nremained stable. On the interbank market, the Interbank Weighted Average Rate (IWAR) decreased, \ntrading on the floor of the policy corridor. Similarly, the average lending rates of banks decreased, \nreflecting pass-through effect of declines in the Government’s short-term rates. \n \nThe GSE Composite Index (GSE-CI) recorded increased year-on-year gain in June 2025 relative to the \ncorresponding period last year. The performance of the index was underpinned by improved investor \nappetite, driven by significant recovery in the profitability of listed financial institutions and improved \nliquidity on that segment of the market. \n \n \n \n \n1900\n2400\n2900\n3400\n3900\n4400\n4900\n5400\n5900\n6400\n6900\nFigure 4.7a: GSE Composite Index\n2023\n2024\n2025\n1600\n1800\n2000\n2200\n2400\n2600\n2800\n3000\n3200\n3400\n3600\nFigure 4.7b: GSE Financial Stocks Index\n2023\n2024\n2025\n \n24 \n \nPUBLIC \n5. Banking Sector Developments \n \n5.0 Highlights \nThe banking sector posted a strong performance during the first six months of 2025, recording higher \nprofit than a year ago, on the back of growth in total assets and deposits. The Financial Soundness \nIndicators (FSIs) remained healthy, with improved solvency, efficiency and asset quality indicators, \nwhile liquidity indicators moderated. The industry’s Non-Performing Loans (NPL) ratio improved in \nJune 2025 on account of a higher growth in loans and advances relative to the growth in the NPL stock. \nThe outlook for the banking sector remains largely stable, dependent on banks’ adherence to \nrecapitalisation plans, the establishment of a strong corporate governance culture and enforcement of \nstrict credit underwriting standards. \n \n \n5.1 Banks’ Balance Sheet \nTotal assets of the banking sector grew by 18.9 percent to GH¢384.3 billion as at June 2025, compared \nwith 33.3 percent in June 2024. The lower growth in assets was driven by a moderate growth in deposits \nas well as the appreciation of the Ghana cedi. Foreign assets contracted by 32.2 percent in June 2025, \ncompared to a growth of 57.6 percent in June 2024, while domestic assets grew by 24.7 percent in June \n2025, from 31.0 percent growth in June 2024. Subsequently, the share of foreign assets in total assets \ndecreased to 5.8 percent in June 2025 from 10.2 percent the prior year, while the share of domestic \nassets rose to 94.2 percent from 89.8 percent during the same reference period. \n \nInvestments grew by 51.5 percent to GH¢162.3 billion in June 2025, from a growth of 19.2 percent in \nJune 2024, as banks recorded a significant growth in short-term instruments. Short-term bills surged \nby 129.1 percent from a growth of 7.3 percent in June 2024. Long-term instruments (securities), \nhowever, contracted by 0.1 percent in June 2025 from a growth of 28.6 percent in June 2024. The \ndevelopments in bills and securities culminated in an increased share of investments in total assets to \n42.3 percent in June 2025 from 33.2 percent in June 2024. \n \nGrowth in gross loans and advances moderated to 6.1 percent in June 2025 relative to the 15.6 percent \ngrowth recorded in June 2024. Gross loans and advances stood at GH¢89.7 billion in June 2025. Growth \nin net loans and advances (gross loans adjusted for provisions and interest in suspense) also moderated \nto 4.8 percent from 10.3 percent during the review period. \n \nThe growth in assets was funded by an increase in deposits and other funding sources. Deposits \nremained the main source of funding for the banking sector, with a share of 72.9 percent of total assets \nin June 2025, down from a share of 76.1 percent in June 2024. Deposits increased by 13.9 percent to \nGH¢280.1 billion in June 2025, compared to the growth of 31.1 percent recorded in June 2024. The \nforeign currency component of deposits contracted by 23.3 percent to GH¢62.3 billion in June 2025, \nfrom a growth of 29.8 percent a year ago, and this was largely driven by the currency appreciation. \nBorrowings, however, increased by 42.1 percent to GH¢33.0 billion in June 2025 from 44.4 percent \ngrowth recorded in June 2024. The growth in borrowings in June 2025 was mainly driven by domestic \nborrowing while foreign borrowing contracted further by 40.0 percent in June 2025 relative to a \ncontraction of 0.8 percent the previous year. On the domestic front, both short-term and long-term \nborrowing grew significantly. In contrast both short-term and long-term foreign borrowings contracted \nduring the review period. \n \n25 \n \nPUBLIC \n \n \nBanks’ shareholders’ funds position (comprising paid-up capital and reserves) continued to improve on \naccount of a rebound in profits across the industry and recapitalization efforts of undercapitalized banks. \nTotal shareholders’ funds increased by 48.5 percent to GH¢48.0 billion as at end-June 2025, compared \nto a growth of 44.9 percent recorded a year ago. \n \n \n \nSource: Bank of Ghana \n \n5.1.1 Asset and Liability Structure \nThe asset structure of the industry’s balance sheet in June 2025 reflected banks’ preference for \ninvestments. Investments (comprising bills, securities, and equity) replaced cash and bank balances as \nthe largest component of total assets, with an increased share of 42.3 percent in June 2025, from 33.2 \npercent in June 2024, as banks rebalanced their portfolios in favour of higher returns on investments. \nCash and bank balances was the second largest component of banks’ assets as at June 2025, although \nits share in total assets declined to 28.9 percent, from 35.8 percent in June 2024. Investments and cash \nand bank balances together accounted for 71.2 percent of total assets in June 2025, compared to a share \nof 69.0 percent in June 2024. Net loans and advances constituted the third-largest component of total \nassets, recording a declined share of 19.0 percent, from 21.4 percent in June 2024. Non-earning assets \n(fixed assets and other assets) in banks’ total assets recorded a marginal increase in share to 9.9 percent, \nfrom 9.6 percent, during the review period. \n \nOn the liability side, the share of deposits in banks’ liabilities and shareholders’ funds declined to 72.9 \npercent in June 2025, from 76.1 percent in the corresponding period last year. The share of borrowings \nrose during the period under review to 8.6 percent from 7.2 percent, reflecting the growth in total \nborrowings during the period. The share of shareholders’ funds in banks’ liabilities and shareholders’ \nJun-24\nApr-25\nJun-25\nJun-24\nApr-25\nJun-25\nJun-24\nJun-25\nTOTAL ASSETS\n323,177.5\n \n390,142.3\n \n384,273.7\n \n33.3\n \n27.2\n \n18.9\n \n100.0\n \n100.0\n \nA. Foreign Assets\n33,010.0\n \n43,371.9\n \n22,381.6\n \n57.6\n \n49.0\n \n(32.2)\n \n10.2\n \n5.8\n \nB. Domestic Assets\n290,167.5\n \n346,770.3\n \n361,892.2\n \n31.0\n \n24.9\n \n24.7\n \n89.8\n \n94.2\n \n Investments\n107,211.3\n \n135,382.7\n \n162,464.7\n \n19.2\n \n27.8\n \n51.5\n \n33.2\n \n42.3\n \n i. Bills\n42,796.0\n \n68,116.9\n \n98,039.9\n \n7.3\n \n51.7\n \n129.1\n \n13.2\n \n25.5\n \n ii. Securities\n64,078.7\n \n66,849.0\n \n64,008.4\n \n28.6\n \n10.0\n \n(0.1)\n \n19.8\n \n16.7\n \n Advances (Net)\n69,104.7\n \n74,559.5\n \n72,443.7\n \n10.3\n \n18.7\n \n4.8\n \n21.4\n \n18.9\n \n of which Foreign Currency\n24,333.5\n \n21,562.0\n \n17,004.3\n \n10.4\n \n(4.6)\n \n(30.1)\n \n7.5\n \n4.4\n \n Gross Advances\n84,530.0\n \n92,184.8\n \n89,702.9\n \n15.6\n \n18.3\n \n6.1\n \n26.2\n \n23.3\n \n Other Assets\n21,961.5\n \n26,133.4\n \n27,494.6\n \n49.3\n \n23.1\n \n25.2\n \n6.8\n \n7.2\n \n Fixed Assets\n8,582.7\n \n9,787.5\n \n9,910.3\n \n15.1\n \n16.5\n \n15.5\n \n2.7\n \n2.6\n \nTOTAL LIABILITIES AND CAPITAL\n323,177.5\n \n390,142.3\n \n384,273.7\n \n33.3\n \n27.2\n \n18.9\n \n100.0\n \n100.0\n \nTotal Deposits\n245,880.2\n \n289,545.2\n \n280,118.8\n \n31.1\n \n22.6\n \n13.9\n \n76.1\n \n72.9\n \n of which Foreign Currency\n81,228.3\n \n85,409.6\n \n62,296.9\n \n29.8\n \n12.8\n \n(23.3)\n \n25.1\n \n16.2\n \nTotal Borrowings\n23,168.3\n \n32,923.0\n \n32,910.7\n \n44.4\n \n69.1\n \n42.1\n \n7.2\n \n8.6\n \n Foreign Liabilities\n7,487.5\n \n6,075.6\n \n4,490.9\n \n(0.8)\n \n(7.2)\n \n(40.0)\n \n2.3\n \n1.2\n \n i. Short-term borrowings\n2,490.6\n \n2,288.9\n \n1,863.6\n \n33.2\n \n14.5\n \n(25.2)\n \n0.8\n \n0.5\n \n ii. Long-term borrowings\n4,015.1\n \n2,263.8\n \n1,563.9\n \n(2.5)\n \n(40.4)\n \n(61.0)\n \n1.2\n \n0.4\n \n iii. Deposits of non-residents\n940.6\n \n1,422.6\n \n997.1\n \n(39.1)\n \n94.5\n \n6.0\n \n0.3\n \n0.3\n \n Domestic Liabilities\n281,979.5\n \n340,090.3\n \n331,433.0\n \n33.2\n \n26.6\n \n17.5\n \n87.3\n \n86.2\n \n i. Short-term borrowing\n15,230.3\n \n26,524.1\n \n27,361.9\n \n83.0\n \n113.1\n \n79.7\n \n4.7\n \n7.1\n \n ii. Long-term Borrowings\n1,432.3\n \n1,846.1\n \n2,121.3\n \n(17.6)\n \n50.8\n \n48.1\n \n0.4\n \n0.6\n \n iii. Domestic Deposits\n244,939.5\n \n288,122.7\n \n279,121.7\n \n31.7\n \n22.3\n \n14.0\n \n75.8\n \n72.6\n \nOther Liabilities\n21,093.0\n \n22,438.1\n \n21,694.4\n \n32.6\n \n14.4\n \n2.9\n \n6.5\n \n5.6\n \nPaid-up capital\n13,023.9\n \n17,282.9\n \n18,879.0\n \n24.8\n \n32.6\n \n45.0\n \n4.0\n \n4.9\n \nShareholders' Funds\n32,307.2\n \n43,964.3\n \n47,979.2\n \n44.9\n \n42.6\n \n48.5\n \n10.0\n \n12.5\n \n (GH ¢'million)\nY-on-Y Growth (%)\nShares (%)\nTable 5.1: Key Developments in DMBs' Balance Sheet\n \n26 \n \nPUBLIC \nfunds also rose to 12.5 percent from 10.0 percent, consistent with the strong growth in shareholders’ \nfunds. The proportion of other liabilities on the other hand declined to 5.6 percent, from 6.5 percent \nduring the review period. \n \nFigure 5.1: Developments in Banks’ Balance Sheet & Asset Quality \n \n Source: Bank of Ghana \n \n5.1.2 Share of Banks’ Investments \nBills (short-term debt instruments) constituted the largest component of banks’ investment portfolio, \nafter its share rose to 60.3 percent in June 2025, from 39.9 percent in June 2024. The share of long-term \nsecurities in total investments, however, declined to 39.4 percent from 59.8 percent over the same \nperiod. The share of equity investments remained negligible and unchanged at 0.3 percent during the \nperiod under review. \n \n5.2 Credit Risk \nThe industry’s asset quality improved during the first half of 2025, relative to the comparative period \nin 2024, although credit risk remains elevated. The improved asset quality reflected in a decline in NPL \nratios in all but three economic sectors in June 2025 compared to June 2024. \n44.3\n39.9\n50.3 \n60.3 \n55.4\n59.8\n49.4 \n39.4 \n0.0\n10.0\n20.0\n30.0\n40.0\n50.0\n60.0\n70.0\n80.0\n90.0\n100.0\nJun-23\nJun-24\nApr-25\nJun-25\nComponents of Banks' Investments (% share)\nBills\nSecurities\nShares & Other Equities\n27.7\n35.8\n36.6 \n28.9 \n37.1\n33.2\n34.7 \n42.3 \n25.8\n21.4\n19.3 \n19.0 \n9.4 \n9.6 \n9.4 \n9.9 \n0.0\n10.0\n20.0\n30.0\n40.0\n50.0\n60.0\n70.0\n80.0\n90.0\n100.0\nJun-23\nJun-24\nApr-25\nJun-25\nAsset Structure of Banks (%) \nCash and Due from Banks\nInvestments\nNet Advances\nOthers\n77.4 \n76.1 \n74.2 \n72.9 \n6.6 \n7.2 \n8.4 \n8.6 \n9.2 \n10.0 \n11.3 \n12.5 \n6.6 \n6.5 \n5.8 \n5.6 \n -\n 10.0\n 20.0\n 30.0\n 40.0\n 50.0\n 60.0\n 70.0\n 80.0\n 90.0\n 100.0\nJun-23\nJun-24\nApr-25\nJun-25\nLiability Structure of Banks (%)\nTotal Deposits\nTotal Borrowings\nShareholders' Funds\nOther Liabilities\n90.8 \n92.4 \n94.2 \n95.1\n9.2 \n7.6 \n5.8 \n4.9\n -\n 20.0\n 40.0\n 60.0\n 80.0\n 100.0\nComponents of Banks' Credit Portfolio (%)\nPrivate sector\nPublic sector\n3.6\n3.3\n10.7\n9.1\n3.9\n23.6\n7.4\n32.8\n5.5\n3.9\n2.8\n10.6\n8.6\n3.3\n24.4\n5.8\n37.2\n3.3\n0.0\n10.0\n20.0\n30.0\n40.0\nAgric, Forest. & Fishing\nMining & Quarrying\nManufacturing\nConstruction\nElect., Water & Gas\nCommerce and Finance\nTransp., Stor. & Commu.\nServices\nMiscellaneous\nDistribution of Credit by Sector (%)\nJun-25\nJun-24\n0.0\n5.0\n10.0\n15.0\n20.0\n25.0\n30.0\nAgric, Forest. & Fishing\nMining & Quarrying\nManufacturing\nConstruction\nElect., Water & Gas\nCommerce and Finance\nTransp., Stor. & Commu.\nServices\nMiscellaneous\n8.4\n1.8\n8.0\n13.8\n3.3\n19.7\n15.1\n26.6\n3.2\n10.0\n0.7\n8.0\n11.4\n2.4\n27.0\n12.9\n25.7\n1.8\nNPL ratio in each Sector (%)\nJun-25\nJun-24\n \n27 \n \nPUBLIC \n5.2.1 Credit Portfolio Analysis \nThe stock of gross loans and advances (domestic and foreign) recorded a marginal growth of 6.1 percent \nto GH¢89.7 billion at end-June 2025, compared to the 15.6 percent growth during the same period last \nyear. Private sector credit (comprising credit to private enterprises and households) posted a lower \ngrowth of 9.2 percent to GH¢85.3 billion in June 2025, from 17.7 percent in the corresponding period \nthe previous year. Public sector credit contracted by 31.3 percent to GH¢4.4 billion at end-June 2025 \ncompared to a contraction of 5.0 percent in June 2024. Consequently, the share of private sector credit \nin total credit rose to 95.1 percent in June 2025, from 92.4 percent in June 2024, while the share of \npublic sector credit dropped to 4.9 percent, from 7.6 percent a year earlier. \n \nIn terms of the distribution of credit by sectors, the services sector accounted for the largest share of \n37.2 percent as at end-June 2025 (32.8 percent in June 2024), followed by the commerce and finance \nsector with a relative share of 24.4 percent (23.6 percent in June 2024), while the manufacturing sector \naccounted for a share of 10.6 percent (10.7 percent in June 2024). Together, these top three sectors \naccounted for 72.3 percent of total credit in June 2025 (67.2 percent in June 2024). The mining and \nquarrying sector remained the lowest recipient of industry credit, with a share of 2.8 percent (3.3 percent \nin June 2024). \n \n5.2.2 Off-Balance Sheet Transactions \nOff-balance sheet transactions (largely trade finance and guarantees) declined during the review period. \nContingent liabilities contracted by 34.5 percent to GH¢16.8 billion as at end-June 2025, from GH¢25.7 \nbillion as at end-June 2024. Similarly, banks’ contingent liabilities as a percentage of total liabilities \ndeclined to 5.0 percent in June 2025 from 8.8 percent in June 2024. \n \n5.2.3 Asset Quality \nThe asset quality of the banking industry improved during the period under review. The industry’s NPL \nratio declined to 23.1 percent in June 2025 from 24.2 percent in June 2024. When the fully provisioned \nloan loss category is adjusted for, the industry’s NPL ratio decreases to 8.5 percent from 10.8 percent, \nreflecting decreasing stock in the sub-standard category of nonperforming loans. The decline in the \nNPL ratio during the period under review is explained by the lower growth in the NPL stock relative to \nthe growth in total loans. The industry’s NPL stock increased by 1.3 percent to GH¢20.7 billion in June \n2025, from GH¢20.4 billion in June 2024 (representing 49.4% year-on-year growth) although there was \na decrease in the share of foreign currency NPL. \n \nThe private sector accounted for the most non-performing loans, being the largest recipient of the \nindustry’s credit. The proportion of NPLs attributable to the private sector rose marginally to 96.4 \npercent in June 2025 from 95.6 percent in June 2024, while that of the public sector inched down to 3.6 \npercent from 4.4 percent a year earlier. \n \nThe commerce and finance sector, and the agriculture, forestry and fishing sector recorded increases in \ntheir NPL ratios while that of the manufacturing sector remained unchanged in June 2025 compared \nwith the same reference period in 2024. The commerce and finance sector recorded the highest NPL \nratio of 27.0 percent (19.7 percent a year ago), followed by the services sector with an NPL ratio of \n25.7 percent (26.6 percent a year earlier). The NPL ratio of the transport, storage and communications \nsector decreased to 12.9 percent (15.1 percent a year earlier), followed by the construction sector with \na ratio of 11.4 percent (13.8 percent a year earlier), and then the manufacturing sector with an unchanged \n \n28 \n \nPUBLIC \nNPL ratio of 8.0 percent. The mining and quarrying sector accounted for the lowest NPL ratio of 0.7 \npercent in June 2025 (1.8 percent a year earlier). \n \n5.3 Financial Soundness Indicators \nApart from the improvement in asset quality during the review period, other key financial soundness \nindicators (FSIs) in the first half of 2025 pointed to an efficient and profitable sector with improving \ncapital buffers. \n \nFigure 5.2: Key Financial Soundness Indicators \n \nSource: Bank of Ghana \n \n \n5.3.1 Liquidity Indicators \nThe industry’s liquidity position remained strong in June 2025, although core measures recorded \ndeclines as banks rebalanced their portfolios. The ratio of core liquid assets (mainly cash and due from \nbanks) to total deposits decreased to 39.6 percent in June 2025 from 47.1 percent in June 2024, while \ncore liquid assets to total assets ratio decreased to 28.9 percent from 35.8 percent. However, the ratio \nof broad liquid assets to total deposits grew to 97.4 percent from 90.6 percent, while broad liquid assets \nto total assets ratio increased to 71.0 percent from 68.9 percent over the review period. (Annexes Table \n5.5). \n \n5.3.2 Capital Adequacy Ratio \nThe industry’s solvency position, measured by the Capital Adequacy Ratio (CAR) adjusted for the \nregulatory reliefs, was 19.7 percent in June 2025, compared to 14.3 percent recorded in June 2024. This \nwas higher than the revised prudential minimum of 10 percent. The CAR in June 2025 reflected the \nrecognition of 2025 profits posted by banks for purposes of CAR computation, as well as the on-going \nrecapitalisation of banks (Figure 5.2). \n \n6.5\n5.4\n3.5\n5.5\n4.4\n3.5\n2.3\n3.6\n0.0\n1.0\n2.0\n3.0\n4.0\n5.0\n6.0\n7.0\n0.0\n10.0\n20.0\n30.0\n40.0\n50.0\n60.0\n70.0\n80.0\n90.0\nJun-23\nJun-24\nApr-25\nJun-25\nEfficiency Indicators (%)\nCost to income\nOperational Cost to gross income\nCost to total assets (RHS)\nOperational Cost to total assets (RHS)\n37.6\n35.3\n30.0\n32.2\n5.5\n5.4\n5.0\n5.6\n -\n 5.0\n 10.0\n 15.0\n 20.0\n 25.0\n 30.0\n 35.0\n 40.0\nJun-23\nJun-24\nApr-25\nJun-25\nProfitability (%)\nReturn On Equity (%) after tax\nReturn On Assets (%) before tax\n3.8 \n7.8 \n10.8 \n9.0 \n8.5 \n14.1 \n18.7 \n24.2 \n23.6 \n23.1 \n -\n 5.0\n 10.0\n 15.0\n 20.0\n 25.0\n 30.0\n -\n 5,000.0\n 10,000.0\n 15,000.0\n 20,000.0\n 25,000.0\nJun-22\nJun-23\nJun-24\nApr-25\nJun-25\nAsset Quality\nSUB-STD (GH¢m)\nDOUBTFUL (GH¢m)\nLOSS (GH¢m)\nAdjusted NPL Ratio (%)\nNPL Ratio (% Right Axis)\n14.3 \n19.7 \n10.6 \n18.2 \n 10.0\n 20.0\n 30.0\n 40.0\n 50.0\n 60.0\n -\n 5.0\n 10.0\n 15.0\n 20.0\n 25.0\nJun-24\nAug-24\nOct-24\nDec-24\nFeb-25\nApr-25\nJun-25\nSolvency (%)\nRWA/Total Assets\n CAR (with Reliefs)\n CAR (w/o Reliefs)\n \n29 \n \nPUBLIC \n5.3.3 Profitability \nThe banking industry remained profitable for the first half of 2025, recording both a higher profit-\nbefore-tax (PBT) and profit-after-tax (PAT) in June 2025 relative to the same period last year. \n \nGenerally, all income lines increased at higher growth rates in June 2025 compared to the same period \nlast year. Net interest income increased by 20.2 percent to GH¢14.2 billion, higher than the \ncorresponding growth of 19.4 percent in June 2024. In year-on-year terms, interest income increased to \nGH¢21.6 billion from GH¢18.0 billion, representing a growth of 20.4 percent in June 2025 compared \nwith 19.1 percent in June 2024. The higher growth in interest income is explained by the relatively \nhigher rates on money market instruments this year compared to the first half of 2024, as well as higher \nlending rates. Interest expenses also rose to GH¢7.5 billion in June 2025, representing a higher growth \nrate of 20.7 percent compared to the 18.6 percent growth recorded in June 2024. \n \nNet fees and commissions recorded a marginal growth of 17.8 percent from 16.8 percent a year ago \nwhile other income recorded a higher growth of 52.2 percent to GH¢3.6 million from GH¢2.4 billion \n(16.2% contraction) during the same review period. These developments in the different income lines \nculminated in an increase in the industry’s operating income to GH¢20.9 billion in June 2025 from \nGH¢16.8 billion, representing a higher growth of 24.4 percent compared to 12.3 percent in the year \nprior. Similarly, gross income increased to GH¢28.3 billion in June 2025 (23.4% year-on-year growth) \nfrom GH¢23.0 billion in June 2024 (14.0% year-on-year growth). \n \nThe cost lines recorded similar increases in growth rates in June 2025 compared to the same period in \n2024. The industry’s operating expenses grew by 21.4 percent in June 2025, compared to 15.5 percent \nin June 2024, on the back of higher growth in staff costs and other operating (administrative) expenses. \nHowever, impairment losses on financial assets as well as provisions for bad debt and depreciation \ncontracted by 14.8 percent in June 2025, compared to the 39.5 percent contraction in June 2024. \n \nConsequently, the industry’s profit-after-tax increased by 32.6 percent to GH¢7.2 billion in June 2025, \ncompared with the 25.5 percent growth recorded in June 2024. Profit-before-tax also rose by 32.2 \npercent to GH¢10.8 billion, from GH¢8.1 billion in June 2024. The higher growth in profit during the \nfirst half of this year was due to increases in interest income and other income lines in 2025 relative to \nthe same period in 2024. \n \n(a) Return on Assets and Return on Equity \nThe banking sector’s profitability indicators, namely return-on-assets (ROA) and return-on-equity \n(ROE), recorded a mixed performance during the period under review. The ROA improved marginally \nby 5.6 percent in June 2025, from 5.4 percent in June 2024, on account of a moderate growth in total \nassets relative to industry profit. The ROE, however, declined to 32.2 percent in June 2025, from 35.3 \npercent in June 2024 on the back of a higher growth in shareholders’ funds relative to industry profit. \n \n(b) Interest Margin and Spread \nInterest spreads for the banking sector narrowed to 6.0 percent in June 2025 from 6.4 percent in June \n2024. The decrease in spreads was on the back of a decline in gross yields and interest payable. Gross \nyields declined to 8.9 percent in June 2025 from 9.4 percent in June 2024 while interest payable \ndecreased to 2.8 percent from 3.0 percent a year earlier. The ratio of interest margin to total assets \nremained flat at 3.7 percent, while interest margin to gross income declined from 51.4 percent to 50.1 \npercent during the period under review. The ratio of gross income to total assets (asset utilisation) rose \n \n30 \n \nPUBLIC \nto 7.4 percent in June 2025 from 7.1 percent in June 2024, while the profitability ratio increased from \n23.5 percent to 25.3 percent over the review period. \n \n(c) Composition of Banks’ Income \nIncome from investments remained the largest component of banks’ total income in June 2025, with its \nshare rising to 43.9 percent from 42.8 percent in June 2024 following the growth in total investments. \nThe share of interest income from loans, however, decreased to 33.6 percent from 36.3 percent in June \n2024. The share of banks’ income from fees and commissions increased to 11.2 percent from 10.5 \npercent, while the share of income from other sources also rose to 11.3 percent from 10.4 percent during \nthe period under review. \n \nFigure 5.3: Composition of Income, Cost and Borrowings \n \nSource: Bank of Ghana \n \n \n5.3.4 Operational Efficiency \nThe industry’s efficiency recorded a mixed performance during the first half of 2025 compared with \nthe same period last year. The cost-to-income ratio improved to 74.7 percent in June 2025, from 76.5 \npercent in June 2024, whereas cost-to-total assets ratio weakened to 5.5 percent, from 5.4 percent a year \nearlier. The operational cost-to-total assets ratio also increased to 3.6 percent from 3.5 percent a year \nearlier, reflecting the higher growth in operating expenses in June 2025 relative to June 2024. However, \nthe ratio of operational cost to total income improved to 48.4 percent from 49.6 percent, following the \nstrong outturn in income in June 2025 compared with the corresponding period last year. \n \n \n \n32.9\n35.2\n34.5\n35.2\n41.5\n43.3\n45.2\n43.6\n10.9\n6.0\n4.8\n4.2\n14.7\n15.6\n15.6\n17.0\n0.0\n10.0\n20.0\n30.0\n40.0\n50.0\n60.0\n70.0\n80.0\n90.0\n100.0\nComposition of Cost (%)\nInterest Expense\nOperating Expense\nTotal Provision\nTax\n38.8\n42.8\n42.7\n43.9\n35.9\n36.3\n35.7\n33.6\n10.5\n10.5\n12.5\n11.2\n14.8\n10.4\n9.1\n11.3\n0.0\n10.0\n20.0\n30.0\n40.0\n50.0\n60.0\n70.0\n80.0\n90.0\n100.0\nComposition of Banks' Income (%)\nInvestments\nLoans\nFees & Commissions\nOther Income\n52.1\n62.7\n71.9\n86.2\n89.6\n47.9\n37.3\n28.1\n13.8\n10.4\n0.0\n10.0\n20.0\n30.0\n40.0\n50.0\n60.0\n70.0\n80.0\n90.0\n100.0\nJun-22\nJun-23\nJun-24\nApr-25\nJun-25\nBanks' Borrowing by Source (% of Total)\n Domestic Borrowing\n Foreign Borrowing\n61.1\n31.2\n38.3\n50.3\n54.4\n38.9\n68.8\n61.7\n49.7\n45.6\n0.0\n10.0\n20.0\n30.0\n40.0\n50.0\n60.0\n70.0\n80.0\n90.0\n100.0\nJun-22\nJun-23\nJun-24\nApr-25\nJun-25\nBanks' External Borrowing by Maturity \n(% of Total)\nShort-term borrowings\nLong term borrowings\n \n31 \n \nPUBLIC \n5.3.5 Banks’ Counterparty Relationships \nTotal offshore balances decreased by 34.1 percent to GH¢19.7 billion in June 2025, compared to the \n71.4 percent growth in the previous year, driven largely by a contraction in placements and nostro \nbalances. Industry placements with foreign counterparties recorded contracted by 22.8 percent from the \n69.4 percent growth recorded during the same period a year earlier. Similarly, nostro balances also \ncontracted by 44.7 percent compared with a growth of 73.6 percent in June 2024. As a result, the ratio \nof offshore balances to net worth decreased to 41.1 percent from 92.6 percent during the review period. \n \nThe share of banks’ external borrowings in total borrowings declined to 10.4 percent in June 2025, from \n28.1 percent in June 2024, while the share of domestic borrowings increased to 89.6 percent from 71.9 \npercent in June 2024. Banks’ external borrowings were tilted towards short-term instruments with the \nshare of short-term borrowings in total external borrowings increasing to 54.4 percent from 38.3 \npercent, while the share of long-term borrowings declined to 45.6 percent from 61.7 percent a year \nearlier. \n \n5.4 Credit Conditions Survey \nResults of the June 2025 Credit Conditions Survey indicated a net tightening in the overall stance on \nloans to enterprises between April and June 2025, on the back of a net tightening in the stance on all \ncomponents of enterprise loans (namely short-term and long-term enterprise loans, loans to SMEs, and \nloans to large enterprises). Banks projected their overall stance on enterprise loans to record a net easing \nin July and August 2025 from an easing in all components of enterprise loans apart from loans to large \nenterprises. \n \nHowever, the overall stance on loans to households eased during the June 2025 survey round from a \nnet ease in stance on all components of household loans (namely loans for house purchases and \nconsumer credit and other lending). Over the next two months, banks project a net easing in the overall \nstance on loans to households, driven mainly by a net ease on consumer credit and other lending, \nalthough the stance on loans for house purchases is expected to tighten. \n \nOn the demand side, the June 2025 survey further indicated a reduction in overall demand for enterprise \nloans from decreases in the demand for loans on all components of enterprise loans except long-term \nloans. Banks projected a net decreased demand for corporate loans over the next two months on account \nof a net decrease in the demand by small and medium-sized enterprises although demand for loans by \nlarge enterprises is projected to increase. \n \nCredit demand by households recorded a net increase between April and June 2025 from a net increase \nin the demand for both mortgages and consumer credit and other lending. Over the next two months, \nbanks expect a surge in the demand for both consumer credit and loans for house purchases to drive a \nnet increase in the overall demand for household loans. \n \n \n \n \n \n \n \n \n \n32 \n \nPUBLIC \n \nFigure 5.4: Credit Conditions Survey Results \n \nSource: Bank of Ghana \n \n \n5.5 Conclusion and Outlook \nThe banking sector’s performance continued to improve in the first six months of the year. The sector \nremained profitable, with all banks recording profits for first half of 2025. The banking sector solvency \nand efficiency indicators pointed to relative improvement. The industry’s outlook remains stable, with \nrecapitalisation and enforcement of stringent credit underwriting standards, as well as intensified loan \nrecovery efforts being critical to the performance of the sector going forward. \n \n \n \n \n \n \n \n \n \n-10.00\n0.00\n10.00\n20.00\n30.00\n40.00\n50.00\n60.00\nNPR (%)\nLoans for house purchase\nConsumer credit and other lending\nOverall stance to Households\nHouseholds\n-30\n-20\n-10\n0\n10\n20\n30\n40\n50\nNPR (%)\nLoans for house purchase\nLoans for consumer credit\nOverall Household demand for loans\nHouseholds\n-10.00\n-5.00\n0.00\n5.00\n10.00\n15.00\n20.00\n25.00\n30.00\n35.00\n40.00\nNPR (%)\nSmall and Medium Enterprises\nLarge Enterprises\nOverall Credit Stance for Enterprises\nShort term enterprise loans\nLong term enterprise loans\nIndex, a rise denotes tightening\nCorporates\n-30.00\n-20.00\n-10.00\n0.00\n10.00\n20.00\n30.00\n40.00\nNPR (%)\nOverall Demand for credit\nSmall and Medium Enterprises\nLarge Enterprises\nShort term\nLong term\nIndex, a rise denotes increase in \ndemand\nCorporates\n \n33 \n \nPUBLIC \n \n6. Macroprudential Developments \n \n6.0 Overview \nThere has been an improvement in global and domestic macroeconomic risk levels in June 2025 \ncompared to June 2024. The soundness of the banking sector, especially its resilience to shocks, has \nimproved markedly, year-on-year. However, debt servicing remains a challenge for both the corporate \nand household sectors. The debt market has shown signs of renewed foreign investor sentiment \nfollowing the successful completion of Ghana’s debt restructuring. \n \n6.1 Microfinancial Risk Assessment \nThe Bank of Ghana observed an improvement in global and domestic macroeconomic risk levels in \nJune 2025 compared to June 2024. From the Cobweb framework, risk levels from both the global \nmacroeconomy and the domestic macroeconomy improved in June 2025 relative to June 2024. This \noutcome was largely driven by sustained economic growth and declining inflation globally and \ndomestically, alongside other domestic factors such as exchange rate appreciation, a stronger reserve \nposition, and lower public debt levels. However, risks from the corporate and household sectors \nremained broadly unchanged, reflecting the relatively high non-performing ratio in the banking sector. \nIn the outlook, global economic risks are expected to moderate in the near term, supported by a steady \ndecline in inflation. However, downside risks remain, including the adverse effects of geopolitical \ntensions on growth, commodity prices, and financial conditions. On the domestic economy front, risk \nlevels are projected to remain stable on the back of sustained growth amid monetary policy easing and \nthe expected disinflationary trend. It is the expectation that the monetary policy rate cut, together with \nthe reductions in the 91-day Treasury Bill and Interbank weighted average rate, will drive lending rates \ndownwards. This will help moderate risk build-up in the corporate and household sectors. \n \nFigure 6.1: Cobweb Diagram \n \nSource: Bank of Ghana \n \nThe private sector–credit to GDP gap is another measure of macrofinancial risk used in monitoring \nfinancial stability conditions. A positive credit-to-GDP gap indicates that total private sector credit \nextension relative to the size of the economy is above its long-term trend and vice versa. The negative \ncredit-to-GDP gap recorded in June 2025 suggests that there is further scope to expand private sector \n -\n 0.20\n 0.40\n 0.60\n 0.80\n 1.00\n 1.20\n 1.40\n 1.60\n 1.80\nGlobal Economy Risk\nDomestic Economy Risk\nHouseholds Sector Risk\nCorporate Sector Risk\nJun-2023\nJun-2024\nJun-2025\n \n34 \n \nPUBLIC \ncredit delivery without causing excessive build-up of risks in the economy, subject to sound credit risk \nmanagement practices by the banking sector. \n \n \nFigure 6.2: Credit-to-GDP Gap \n \nSource: Bank of Ghana \n \n6.2 Risk of Capital Flight \nWhile the Ghana Stock Market has outperformed its peers, foreign investors have taken advantage to \nrealize capital gains by selling off their shares during the first half of the year. However, there was a \ngradual recovery of foreign investors' activities in the bond market. \n \nThe Ghana stock exchange (GSE) outperformed its peers in sub-Saharan Africa. This is partly due to \nthe strong earnings of some listed institutions and favourable economic prospects. The positive \nperformance is expected to contain foreign portfolio reversals from the equity market. As of July 15, \n2025, the GSE recorded a year-to-date return of 32.0 per cent, compared to 28.1 per cent, -2.3 per cent, \nand 22.8 per cent for similar markets in Kenya, Namibia, and Nigeria over the same period. \n \nFigure 6.3: Year-to-Date Returns of Selected Stock Markets in SSA - 2025 \n \nSource: Databank Group \n \nAs of end-May 2025, foreign investors on the equity market recorded a year-to-date net sell-off of \nGH¢594.42 million, significantly higher than the GH¢109.34 million recorded over the same period in \n2024. The increasing sell-off partly reflects their desire to realize gains from the cedi’s appreciation and \nthe strong stock market performance experienced over the past two years. \n \n-2\n-1.5\n-1\n-0.5\n0\n0.5\n1\n1.5\n2\n2.5\n2008Q2\n2008Q4\n2009Q2\n2009Q4\n2010Q2\n2010Q4\n2011Q2\n2011Q4\n2012Q2\n2012Q4\n2013Q2\n2013Q4\n2014Q2\n2014Q4\n2015Q2\n2015Q4\n2016Q2\n2016Q4\n2017Q2\n2017Q4\n2018Q2\n2018Q4\n2019Q2\n2019Q4\n2020Q2\n2020Q4\n2021Q2\n2021Q4\n2022Q2\n2022Q4\n2023Q2\n2023Q4\n2024Q2\n2024Q4\n2025Q2\nCTGDP_GAP\n-20.0%\n-10.0%\n0.0%\n10.0%\n20.0%\n30.0%\n40.0%\n02-Jan-25\n09-Jan-25\n16-Jan-25\n23-Jan-25\n30-Jan-25\n06-Feb-25\n13-Feb-25\n20-Feb-25\n27-Feb-25\n06-Mar-25\n13-Mar-25\n20-Mar-25\n27-Mar-25\n03-Apr-25\n10-Apr-25\n17-Apr-25\n24-Apr-25\n01-May-25\n08-May-25\n15-May-25\n22-May-25\n29-May-25\n05-Jun-25\n12-Jun-25\n19-Jun-25\n26-Jun-25\n03-Jul-25\n10-Jul-25\nGhana\nKenya\nNamibia\nNigeria\n \n35 \n \nPUBLIC \nThe debt market has shown signs of renewed foreign investor sentiment following the successful \ncompletion of Ghana’s debt restructuring. The foreign investors made net purchases of GH¢69.14 \nmillion in the first five months of 2025 compared with 3.89 million in 2024. \n \nFigure 6.4: Foreign Investors' Cumulative Net Purchases in the equity and debt market \n \n \nSource: Central Securities Depository \n \n6.3 Banking Sector Soundness \nThe Banking Sector Soundness Index (BSSI) improved year-on-year on the back of improved solvency \namid strong liquidity, cost-efficiency, and profitability of the sector. The non-performing loans ratio, \nthough improved, remained elevated. That notwithstanding, the ongoing macroeconomic recovery has \nled to a significant moderation in the build-up of new non-performing loans. \n \nFigure 6.5: Banking Sector Soundness Index (BSSI) \n \nSource: Bank of Ghana \n \n \n (700.00)\n (600.00)\n (500.00)\n (400.00)\n (300.00)\n (200.00)\n (100.00)\n -\n 100.00\n2023\n2024\n2025\nGHS M\nCUMULATIVE NET MONTHLY \nFOREIGN INVESTOR EQUITY \nPURCHASES GHC M (JAN-MAY)\n -\n 200.00\n 400.00\n 600.00\n 800.00\n 1,000.00\n 1,200.00\n 1,400.00\n2023\n2024\n2025\nGHS M\nCUMULATIVE NET MONTHLY \nFOREIGN INVESTOR DEBT \nINSTRUMENTS PURCHASES GHC \nM (JAN-MAY)\n \n36 \n \nPUBLIC \nThe heatmap shows a broad-based improvement in financial soundness indicators across the banking \nsector. It highlights the improvements in capital adequacy and profitability year-on-year. \nNotwithstanding these gains, non-performing loans remain elevated. \n \nTable 6.1: Heatmap \n \nColor Code \nGreen \nBlue \nYellow \nRed \nPerforming Period \n1st Best \n2nd Best \n3rd Best \n4th Best \nSource: Bank of Ghana \n \n6.4 Banking Sector Resilience \nThe stress tests assessed the implications of macroeconomic developments in the outlook for the \nsolvency conditions of the banking sector. The results of the stress tests indicated that the banking sector \nappears resilient to adverse macroeconomic developments, given the current strong capital positions of \nthe banks. Again, a deterioration in macroeconomic conditions could negatively impact asset quality \nand increase operational costs, but these would be offset by gains from net interest income. \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nFSIs\nJun-23\nSep-23 Dec-23\nMar-24\nApr-24 Jun-24\nSep-24 Dec-24 Jan-25 Feb-25 Mar-25 Apr-25\nMay-25 Jun-25\nCapital Adequacy\nRegulatory capital to risk weighted assets (Threshold - Without Reliefs)\n7.36\n \n7.39\n \n8.27\n \n11.69\n \n11.48\n \n10.55\n \n11.17\n \n11.28\n \n11.15\n \n12.10\n \n15.54\n \n15.84\n \n18.58\n \n17.83\n \nRegulatory capital to risk weighted assets (Distribution - Without Reliefs)\n7.36\n \n7.39\n \n8.27\n \n11.69\n \n11.48\n \n10.55\n \n11.17\n \n11.28\n \n11.15\n \n12.10\n \n15.54\n \n15.84\n \n18.58\n \n18.24\n \nRegulatory tier I capital to risk-weighted assets\n11.60\n \n11.03\n \n11.04\n \n13.56\n \n12.95\n \n11.46\n \n11.51\n \n11.13\n \n10.83\n \n11.74\n \n14.89\n \n13.96\n \n16.64\n \n16.28\n \nAsset Quality\nNonperforming loans net of loan-loss provision to capital\n14.26\n \n11.28\n \n14.55\n \n19.45\n \n15.78\n \n15.36\n \n12.29\n \n11.10\n \n11.07\n \n10.82\n \n11.98\n \n10.81\n \n9.00\n \n8.32\n \nNonperforming loans to total gross loans\n18.71\n \n17.99\n \n20.58\n \n26.74\n \n25.66\n \n24.13\n \n22.77\n \n21.79\n \n22.55\n \n22.57\n \n23.44\n \n23.57\n \n23.52\n \n23.09\n \nBanks provisions to NPL\n76.76\n \n78.89\n \n73.19\n \n71.70\n \n75.66\n \n75.66\n \n78.35\n \n78.74\n \n78.27\n \n78.42\n \n76.67\n \n78.13\n \n79.51\n \n80.73\n \nEarnings\nReturn on assets\n5.54\n \n5.33\n \n5.37\n \n5.63\n \n5.39\n \n5.40\n \n5.05\n \n5.04\n \n4.85\n \n4.67\n \n4.96\n \n4.98\n \n5.35\n \n5.61\n \nReturn on equity\n37.59\n \n35.58\n \n34.16\n \n36.36\n \n34.97\n \n35.25\n \n32.12\n \n30.84\n \n29.71\n \n28.51\n \n29.92\n \n30.02\n \n31.47\n \n32.21\n \nInterest margin to gross income\n49.06\n \n51.27\n \n51.80\n \n54.23\n \n52.46\n \n51.41\n \n51.10\n \n50.92\n \n52.36\n \n51.72\n \n51.82\n \n51.28\n \n50.08\n \n50.11\n \nLiquidity\nCore liquid assets to total assets\n26.77\n \n24.73\n \n29.34\n \n30.99\n \n33.77\n \n34.47\n \n35.39\n \n36.16\n \n36.15\n \n37.41\n \n36.24\n \n35.36\n \n31.23\n \n27.50\n \nCore liquid assets to short-term liabilities\n32.29\n \n29.83\n \n35.48\n \n37.32\n \n40.61\n \n41.39\n \n42.54\n \n43.31\n \n43.61\n \n45.23\n \n43.47\n \n42.51\n \n38.03\n \n33.68\n \nCore liquid assets to total deposits\n34.60\n \n31.71\n \n37.61\n \n40.04\n \n43.84\n \n45.31\n \n46.82\n \n48.16\n \n48.58\n \n50.15\n \n48.20\n \n47.63\n \n42.95\n \n37.73\n \nBroad liquid assets to total assets \n63.78\n \n64.73\n \n65.69\n \n68.35\n \n68.21\n \n67.55\n \n67.58\n \n66.87\n \n68.19\n \n69.08\n \n69.44\n \n69.93\n \n70.29\n \n69.67\n \nBroad liquid assets to short-term liabilities\n76.92\n \n78.07\n \n79.42\n \n82.31\n \n82.03\n \n81.10\n \n81.23\n \n80.09\n \n82.28\n \n83.53\n \n83.30\n \n84.07\n \n85.60\n \n85.31\n \nEfficiency\nNoninterest expenses to gross income\n41.26\n \n42.69\n \n43.04\n \n38.86\n \n38.78\n \n37.65\n \n39.43\n \n40.83\n \n38.70\n \n38.63\n \n37.78\n \n38.08\n \n36.51\n \n35.70\n \nPersonnel expenses to gross income\n15.49\n \n15.65\n \n15.67\n \n16.19\n \n16.65\n \n16.62\n \n16.67\n \n16.45\n \n17.65\n \n18.21\n \n17.25\n \n17.47\n \n17.35\n \n16.71\n \n \n37 \n \nPUBLIC \n \n Figure 6.6: Key Macroeconomic Scenarios of Stress Tests \n \n \nSource: Bank of Ghana \n \n-2.00%\n-1.00%\n0.00%\n1.00%\n2.00%\n3.00%\n4.00%\n5.00%\n6.00%\n7.00%\n8.00%\nDec-20\nJun-21\nDec-21\nJun-22\nDec-22\nJun-23\nDec-23\nJun-24\nDec-24\nJun-25\nDec-25\nReal GDP growth (%, yoy)\nHistory\nBaseline\nAdverse\nSeverely adverse\n0.00%\n10.00%\n20.00%\n30.00%\n40.00%\n50.00%\n60.00%\nInflation (%, yoy)\nHistory\nBaseline\n0.00%\n5.00%\n10.00%\n15.00%\n20.00%\n25.00%\n30.00%\n35.00%\nInterbank rate (%)\nHistory\nBaseline\n0.00%\n5.00%\n10.00%\n15.00%\n20.00%\n25.00%\n30.00%\n35.00%\n40.00%\nT-Bill Rate (%)\nHistory 25.17% 25.28%\nBaseline\n0.00%\n10.00%\n20.00%\n30.00%\n40.00%\nLending rate (%)\nHistory\nBaseline\n0.0%\n5.0%\n10.0%\n15.0%\n20.0%\n25.0%\n30.0%\n35.0%\n40.0%\n4Y Bond yield\nHistory\nBaseline\nAdverse\nSeverely adverse\n0\n2\n4\n6\n8\n10\n12\n14\n16\n18\nExchange rate\nHistory\nBaseline\nAdverse\nSeverely adverse\n \n38 \n \nPUBLIC \nFigure 6.7: Results of Macro Stress Test \n \nSource: Bank of Ghana \n \n \n \n6.5 Conclusion \nThe macro-prudential assessment of the banking sector indicates that positive macroeconomic \ndevelopments have supported the banking sector’s performance and moderated systemic risk in \nH12025. The Bank’s stress test results suggest that the banking sector’s resilience to shocks has \nimproved due to profit retention, capital injections, adequate liquidity, and moderation in the build-up \nof new non-performing loans. However, debt servicing remains a challenge for both the corporate and \nhousehold sectors. It is expected that the ongoing macroeconomic recovery, restructuring of loans to \neligible borrowers, and implementation of measures outlined in the Bank of Ghana’s Regulatory Notice \nto banks on reducing NPLs will help address this challenge. In the near term, sustaining the \nmacroeconomic gains would provide the impetus for a stronger recovery in the banking sector’s \nintermediation capacity. \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n -\n 5.00\n 10.00\n 15.00\n 20.00\nDec-24\nJan-25\nFeb-25\nMar-25\nApr-25\nMay-25\nJun-25\nDec-25\nPercent\nPost-Stress CAR\nHistory\nBaseline\nAdverse\nSeverely Adverse\n \n39 \n \nPUBLIC \n \n7. Fiscal Developments \n \n7.0 Highlights \nThe provisional half year 2025 fiscal performance indicates that total revenue and grants grew, in year-\non-year terms, by 30.5 percent. Despite the significant growth, the outturn was about 3.2 percent below \ntarget. Expenditures were broadly contained, 14.3 percent below the programmed target. The primary \nbalance on commitment basis (the fiscal anchor) as at end-June 2025 recorded a surplus of 1.1 percent \nof GDP, surpassing the targeted surplus of 0.4 percent of GDP. The significant appreciation of the cedi \nhas reduced the debt burden and improved debt sustainability. \n \n7.1 Revenue and Grants \nTotal revenue and grants as of June 2025 was GH¢99,339.3 million (7.1% of GDP), less than the target \nof GH¢102,577.4 million (7.3% of GDP). This outturn represented a shortfall of 3.2 percent from the \ntarget but registered a year-on-year growth of 30.5 percent. The shortfall was mainly on the account of \nthe underperformance of non-tax revenue, taxes on international trade, and grants. \n \nNon-oil tax revenue was GH¢82,954.0 million (5.9% of GDP), accounting for 83.5 of the total revenue \nand grants, and was above its target of GH¢82,167 million (5.9% of GDP) by 1.0 percent. The \noverperformance was mainly due to corporate income tax exceeding its target by GH¢555.3 million \n(2.9%), and mineral royalties exceeding its target by GH¢143.0 million as well as the payment of a \ncapital gains tax of GH¢2,500 million paid by Newmont Ghana Limited on its sale of Akyem Mines. \n \nNon-oil non-tax revenue amounted to GH¢8,031.0 million (0.6% of GDP), representing 8.1 percent of \ntotal revenue and grants. The outturn was below its target of GH¢9,513 million (0.7% of GDP) by 15.6 \npercent. This is made-up of MDAs’ IGF retention, IGF lodgement, fees & user charges, \ndividends/interest & profits, and surface rentals from oil. The underperformance was on account of \nlower than programmed dividend/interest & profits as well as fees and charges collections for the \nperiod. \n \nOil and gas receipts was GH¢3,541.0 million below the target of GH¢6,201.00. The underperformance \nwas due to delays in receipts from corporate income tax from oil and the appreciation of the Ghana \ncedi. \n \nOther Revenue Measures (ESLA) of GH¢4,084 million was received, accounting for 4.1 percent of \ntotal revenue and was above its target of GH¢3,627 million by 12.6 percent. The overperformance was \nmainly due to increased consumption of petroleum products. \n \nGrants was GH¢730 million, which was below its target of GH¢1,069 million by 3.2 percent. This \nunderperformance was on the back of slowdown in disbursement to repurpose government project loan \nportfolio. \n \n7.2 Expenditure \nTotal expenditures for the review period amounted to GH¢109,594.2 million (7.8% of GDP) and within \nits programmed target of GH¢128,042.8 million (9.1% of GDP) by 14.4 percent. This outturn \nrepresented a year-on-year growth of 3.8 percent. All the expenditure lines were below target except \nfor compensation of employees. \n \n \n \n \n \n40 \n \nPUBLIC \n \nTable 7.1: Revenue and Grants \nMillion Ghana Cedis \n2024 \n2025 \n2025 \n2025 \n2025/2024 \n \nOUTTURN \nOUTTURN \nPROG \nDEVIATION \nY-O-Y \n \nQ1+Q2 \nQ1+Q2 \nQ1+Q2 \nOVER(+)/ \nBELOW(-) \nGROWTH \nTAX REVENUE \n \n60,367.2 \n \n84,348.5 \n \n85,297.45 \n \n(1.1) \n \n39.7 \nTAXES ON INCOME & PROPERTY \n \n29,346.6 \n \n43,733.3 \n \n41,778.30 \n \n4.7 \n \n49.0 \nPersonal \n \n9,377.0 \n \n12,832.5 \n \n13,161.37 \n \n(2.5) \n \n36.9 \nCompanies \n \n12,363.8 \n \n19,946.6 \n \n19,391.32 \n 2.9 \n \n61.3 \nCompany Taxes on Oil \n \n1,821.9 \n \n870.8 \n \n1,957.62 \n (55.5) \n \n(52.2) \nOthers \n \n5,783.9 \n \n10,083.3 \n \n7,267.99 \n 38.7 \n \n74.3 \nTAXES ON DOMESTIC GOODS AND SERVICES \n \n25,966.6 \n \n34,732.8 \n \n34,394.77 \n \n1.0 \n \n33.8 \nExcises \n \n3,250.8 \n \n3,044.7 \n \n4,003.98 \n (24.0) \n \n(6.3) \nVAT \n \n14,312.2 \n \n19,723.2 \n \n19,770.14 \n \n(0.2) \n \n37.8 \nNational Health Insurance Levy (NHIL) \n \n3,066.4 \n \n4,588.9 \n \n3,903.76 \n 17.6 \n \n49.7 \nGETFund Levy \n \n3,066.5 \n \n4,561.7 \n \n3,916.71 \n 16.5 \n \n48.8 \nCommunication Service Tax \n \n367.3 \n \n695.8 \n \n513.63 \n 35.5 \n \n89.4 \nE-Transaction Levy \n \n810.5 \n \n812.7 \n \n517.70 \n 57.0 \n \n0.3 \nCovid-19 Health Levy \n \n1,092.8 \n \n1,305.8 \n \n1,768.85 \n (26.2) \n \n19.5 \nTAXES ON INTERNATIONAL TRADE \n \n8,386.2 \n \n10,956.8 \n \n12,548.00 \n \n(12.7) \n \n30.7 \nImports Duty \n \n8,386.2 \n \n10,956.8 \n \n12,548.00 \n \n \nTAX REFUND \n \n(3,332.2) \n \n(5,074.4) \n \n(3,423.63) \n 48.2 \n \n52.3 \nSOCIAL CONTRIBUTIONS \n \n692.6 \n \n796.2 \n \n596.73 \n 33.4 \n \n15.0 \nNON-TAX REVENUE \n \n11,265.1 \n \n10,177.4 \n \n12,583.97 \n \n(19.1) \n \n(9.7) \nOTHER REVENUE \n \n2,539.5 \n \n3,287.3 \n \n3,030.63 \n \n8.5 \n \n29.4 \nDOMESTIC REVENUE \n \n74,864.3 \n \n98,609.4 \n \n101,508.8 \n \n(2.9) \n \n31.7 \nGRANTS \n \n1,237.9 \n \n729.9 \n \n1,068.6 \n \n(31.7) \n \n(41.0) \nProject Grants \n \n1,237.9 \n \n729.9 \n \n1,068.6 \n \n \nProgramme Grants \n0.0 \n0.0 \n726.3 \n \n \nTOTAL REVENUE & GRANTS \n \n76,102.2 \n \n99,339.3 \n \n102,577.4 \n \n(3.16) \n \n30.5 \n Source: Ministry of Finance \n \nCompensation of employees (including wages and salaries and social contributions) was GH¢38,842.49 \nmillion and accounted for 35.4 percent of total expenditure. This was marginally higher than the target \nof GH¢38,320.06 million by 1.4 precent and recorded year-on-year growth of 21.0 percent. In terms of \nfiscal flexibility, compensation of employees constituted 39.1 percent of domestic revenue mobilised \nduring the period under review. The overrun was largely due to last-minute recruitments in late 2024 \nand ad-hoc reviews of conditions of service. \n \n \n41 \n \nPUBLIC \nUse of goods and services totalled GH¢1,942.5 million, constituting 1.8 percent of total expenditure. \nThis was below the target of GH¢3,158.5 million by 38.5 percent and recorded a year-on-year decline \nof 63.0 percent. The significant decline was on the back of commitment control measures by the \ngovernment. \n \nTable 7.2: Expenditure \nMillion Ghana Cedis \n2024 \n2025 \n2025 \n2025 \n2025/2024 \n \nOUTTURN \nOUTTURN \nPROG \nDEVIATION \nY-O-Y \n \nQ1+Q2 \nQ1+Q2 \nQ1+Q2 \nOVER(+)/ \nBELOW(-) \nGROWTH \nCompensation of Employees \n \n32,091.6 \n \n38,842.5 \n \n38,320.1 \n \n1.4 \n \n21.0 \nUse of Goods and Services \n \n5,246.0 \n \n1,942.5 \n \n3,158.5 \n \n(38.5) \n \n(63.0) \nInterest Payment \n \n19,028.5 \n \n25,422.9 \n \n30,504.7 \n \n(16.7) \n \n33.6 \nDomestic \n \n18,463.1 \n \n21,629.8 \n \n26,532.2 \n \n(18.5) \n \n17.2 \nExternal (Due) \n \n565.4 \n \n3,793.1 \n \n3,972.4 \n \n(4.5) \n \n570.9 \nSubsidies \n \n145.3 \n - \n \n149.8 \n - \n \n3.1 \nGrants to Other Government Units \n \n19,272.1 \n \n24,866.4 \n \n24,921.9 \n \n(0.2) \n \n29.0 \nSocial Benefits \n \n376.8 \n \n1,464.5 \n \n1,618.5 \n \n(9.5) \n \n288.6 \nOther Expenditure \n \n12,976.9 \n \n9,950.4 \n \n11,310.9 \n \n(12.0) \n \n(23.3) \no/w Energy Sector Payment Shortfalls \n \n10,600.6 \n \n9,106.2 \n \n6,376.9 \n \n42.8 \n \n(14.1) \nCapital Expenditure \n \n16,418.5 \n \n7,105.1 \n \n18,058.5 \n \n(60.7) \n \n(56.7) \nDomestic financed \n \n8,904.1 \n \n3,951.7 \n \n8,641.9 \n \n(54.3) \n \n(55.6) \nForeign financed \n \n7,514.4 \n \n3,153.4 \n \n9,416.6 \n \n(66.5) \n \n(58.0) \nTOTAL EXPENDITURE \n \n105,555.7 \n \n109,594.2 \n \n128,042.8 \n \n(14.4) \n \n3.8 \nSource: Ministry of Finance \n \nTotal interest payments of GH¢25,422.9 million fell below the programmed target of GH¢30,504.7 \nmillion for the review period, accounting for 23.2 of total expenditure. Out of the total interest \npayments, domestic interest payment was GH¢21,629.8 falling below the target of GH¢26,532.2 \nmillion largely on the back of lower borrowing and interest cost. External interest payment of \nGH¢3,793.1 million also fell below its target of GH¢3,972.4 million due to the appreciation of the local \ncurrency, resulting in lower external debt service burden. \n \nCapital expenditure of GH¢7,105.1 million (0.5% of GDP), representing 6.5 percent of total \nexpenditure, was below its programmed target of GH¢18,058.5 million (1.3% of GDP) by 60.7 percent \nand registered a year-on-year decline of 56.7 percent. Capital expenditure comprised GH¢3,951.7 \nmillion in domestic-financed spending (significantly below the target of GH¢8,641.9 million), and \nGH¢3,153.4 million in foreign-financed spending (also falling short of the target of GH¢9,416.6 \nmillion). The underperformance of capital expenditure was largely due to a shortfall in ABFA revenue \nearmarked for the Big Push projects, the implementation of government commitment control measures, \nand the appreciation of the local currency. \n \n \n42 \n \nPUBLIC \nOther expenditure amounted to GH¢9,950.4 million, representing 9.1 percent of total expenditure for \nthe half year. This was 12 percent below the target of GH¢11,310.9 million and reflected a year-on-\nyear decline of 23.3 percent. The underperformance was mainly due to the absence of programmed \ntransfers to the GoldBod. \n \nGrants to other government units amounted to GH¢24,866.4 million, representing 22.7 percent of total \nexpenditure. This was 0.2 percent below the target of GH¢24,921.9 million but reflected a year-on-year \ngrowth of 29.0 percent. \n \n \n7.3 Budget Balance and Financing \nGovernment budgetary operations resulted in an overall budget deficit (cash basis) of \nGH¢15,119.5million (1.1% of GDP). This was less than the targeted deficit of GH¢32,961.7 million \n(2.4% of GDP) and the deficit of GH¢37,335.5 million (3.2% of GDP) for the corresponding period in \n2024. The overall deficit was financed from both domestic and external sources. Government borrowed, \non net basis, GH¢13,076.8 million from domestic sources and relied on net foreign financing of \nGH¢2,762.4 million. The corresponding primary balance (cash basis) for 2025H1 improved to a surplus \nof GH¢10,303.5 million (0.4% of GDP), from a deficit of GH¢18,307 million (1.6% of GDP) in the \nsame period of 2024. The primary balance on commitment basis (the fiscal anchor) improved to a \nsurplus of GH¢15,083.4 million (1.1% of GDP), from a deficit of GH¢4,161.3 million (0.4% of GDP) \nin the same period of 2024 surpassing the half year target of GH¢5,039.3 million (0.4% of GDP). \n \nTable 7.3: Budget Balance and Financing \nMillion Ghana Cedis \n2024 \n2025 \n2025 \n2025 \n2025/2024 \n \nOUTTURN \nOUTTURN \nPROG \nDEVIATION \nY-O-Y \n \nQ1+Q2 \nQ1+Q2 \nQ1+Q2 \nOVER(+)/ \nBELOW(-) \nGROWTH \nRevenue & Grants \n \n76,102.2 \n \n99,339.3 \n \n102,577.4 \n \n(3.16) \n \n30.5 \nExpenditure \n \n105,555.7 \n \n109,594.2 \n \n128,042.8 \n \n(14.4) \n \n3.8 \nOverall balance (commitment) \n \n(29,453.5) \n \n(10,254.9) \n \n(25,465.4) \n \n(59.7) \n \n(65.2) \n(percent of GDP) \n \n(2.5) \n \n(0.7) \n \n(1.8) \n \n \nArrears Clearance (Net) \n \n(14,145.7) \n \n(4,779.9) \n \n(7,496.3) \n \n(36.2) \n \n(66.2) \no/w Clearance of Arrears \n \n(18,683.5) \n \n(4,779.9) \n \n(7,496.3) \n \n \n(74.4) \no/w Payables build-up \n \n4,537.8 \n0.0 \n0.0 \n \n \nOverall balance (cash) \n \n(43,599.2) \n \n(15,034.8) \n \n(32,961.7) \n \n(54.4) \n \n(65.5) \n(percent of GDP) \n \n(3.7) \n-1.1 \n-2.4 \n \n \nDiscrepancy \n \n6,263.6 \n \n(84.7) \n \n0.0 \n \n \nOverall balance (incl. Divestiture and Discrepancy) \n \n(37,335.5) \n \n(15,119.5) \n \n(32,961.7) \n \n-54.1 \n \n(59.5) \n(percent of GDP) \n \n(3.2) \n-1.1 \n-2.4 \n \n \nFinancing \n \n37,335.5 \n \n15,119.5 \n \n32,961.7 \n \n(54.1) \n \n(59.5) \nForeign (net) \n \n16,242.9 \n \n2,762.4 \n \n14,626.8 \n \n(81.1) \n \n(83.0) \nBorrowing \n \n17,321.9 \n \n6,928.4 \n \n19,125.0 \n \n(63.8) \n \n(60.0) \n \n43 \n \nPUBLIC \nProject loans \n \n6,276.5 \n \n2,423.4 \n \n8,348.0 \n \n(71.0) \n \n(61.4) \nProgramme Loans \n \n11,045.4 \n \n4,505.0 \n \n10,777.0 \n \n \no/w IMF \n \n7,189.8 \n \n4,505.0 \n \n5,878.4 \n \n \no/w World Bank DPO \n \n3,855.6 \n - \n4,898.6 \n \n \nSovereign Bond \n - \n0.0 \n - \n \n \nAmortisation (due) \n \n(1,078.9) \n \n(4,166.1) \n \n(4,498.2) \n \n(7.4) \n \n286.1 \nDomestic (net) \n \n21,603.3 \n \n13,076.8 \n \n18,865.6 \n \n(30.7) \n \n(39.5) \nBanking \n \n(3,146.8) \n \n(568.2) \n \n9,976.2 \n \n(105.7) \n \n(81.9) \nBank of Ghana \n \n(4,075.0) \n \n4,582.7 \n - \n \n \n(212.5) \nComm. Banks \n \n928.2 \n \n(5,150.9) \n \n9,976.2 \n \n(151.6) \n \n(654.9) \nNon-banks \n \n24,750.1 \n \n13,645.0 \n \n8,889.4 \n \n \n(44.9) \nGhana Petroleum Funds \n \n(814.1) \n \n(719.7) \n \n(430.2) \n \n \n(11.6) \nTransfer to Ghana Petroleum Funds \n \n(1,336.7) \n \n(825.2) \n \n(1,434.1) \n \n \n(38.3) \no/w Stabilisation Fund \n \n(935.7) \n \n(577.6) \n \n(1,003.9) \n \n \n(38.3) \no/w Heritage Fund \n \n(401.0) \n \n(247.5) \n \n(430.2) \n \n \n(38.3) \nTransfer from Stabilisation Fund \n \n522.6 \n \n105.5 \n \n1,003.9 \n \n \nSinking Fund \n \n303.3 \n - \n(100.4) \n \n \nContingency Fund \n - - - \n \n \nNominal GDP (Including Oil) \n \n1,176,219.9 \n \n1,400,006.1 \n \n1,400,006.1 \n \n \nNominal GDP (Excluding oil) \n \n1,128,205.1 \n \n1,350,563.8 \n \n1,350,563.8 \n \n \nSource: Ministry of Finance \n \n7.4 Public Debt Analysis \nThe outstanding stock of public debt as of end-June 2025 stood at GH¢613,000.06 million, equivalent \nto 43.8 percent of GDP. This reflects a decline of GH¢113,679.94 million (8.1 percent of GDP) from \nthe end-December 2024 level of GH¢726,680.00 million (61.8 percent of GDP). For the corresponding \nperiod in 2024, the debt-to-GDP ratio was 63.3 percent. The reduction was largely driven by the \nrestructuring of Eurobond debt and the significant appreciation of the Ghana cedi. Of the total public \ndebt, external debt amounted to GH¢300,278.09 million (21.45 percent of GDP), while domestic debt \nstood at GH¢312,722.51 million (22.34 percent of GDP). In terms of the composition of total public \ndebt, external debt accounted for approximately 49 percent, with domestic debt representing the \nremaining 51 percent. \n \n \n \n \n \n \n \n44 \n \nPUBLIC \nTable 7.4: Public Debt \n \n2024 \n2024 \n2025 \n2025 \n2025 \n2025 \n2025 \n2025 \nJun 2025 -\nDec 2024 \n \nJUNE \nDECEMBER \nJANUARY \nFEBRUARY \nMARCH \nAPRIL \nMAY \nJUNE \nCHANGE \nTOTAL DOMESTIC DEBT (GH¢m) \n289,994.4 \n309,844.8 \n320,079.9 \n328,036.0 \n326,903.1 \n322,295.4 \n315,630.3 \n312,722.5 \n2,877.7 \n SHORT TERM \n93,542.5 \n111,165.7 \n121,185.1 \n125,962.4 \n124,988.6 \n121,822.7 \n117,440.3 \n114,734.1 \n3,568.4 \n MEDIUM-TERM \n127,374.6 \n129,051.2 \n129,422.1 \n131,053.5 \n130,943.1 \n129,624.0 \n127,176.7 \n126,984.6 \n(2,066.6) \n LONG-TERM \n67,771.6 \n68,559.9 \n68,559.9 \n70,116.2 \n70,116.2 \n70,116.2 \n70,495.8 \n70,483.5 \n1,923.6 \n STANDARD LOANS \n1,305.7 \n1,068.1 \n912.9 \n903.8 \n855.1 \n732.5 \n517.5 \n520.3 \n(547.7) \nHOLDINGS OF DOMESTIC DEBT \n(GH¢m) \n288,688.7 \n309,844.8 \n320,079.9 \n328,036.0 \n326,903.1 \n322,295.4 \n315,630.3 \n312,722.5 \n2,877.7 \n BANKING SYSTEM \n136,270.8 \n135,756.9 \n139,066.2 \n141,488.5 \n135,691.3 \n133,060.1 \n126,837.1 \n125,665.5 \n(10,091.4) \n NON-BANK \n139,211.2 \n159,604.8 \n166,505.2 \n171,422.1 \n176,331.5 \n174,334.6 \n174,817.0 \n173,202.2 \n13,597.4 \n FOREIGN SECTOR (Non-Resident) \n13,206.7 \n13,415.0 \n13,595.7 \n14,221.6 \n14,025.2 \n14,168.2 \n13,458.7 \n13,334.4 \n(80.6) \n STANDARD LOANS \n \n1,068.1 \n912.9 \n903.8 \n855.1 \n732.5 \n517.5 \n520.3 \n(547.7) \nTOTAL EXTERNAL(US$m) \n31,222.0 \n28,322.6 \n28,223.7 \n28,325.1 \n28,479.8 \n28,822.1 \n28,825.1 \n29,110.3 \n787.6 \n MULTILATERAL \n10,202.0 \n11,235.7 \n11,297.4 \n11,363.5 \n11,390.6 \n11,537.0 \n11,506.5 \n11,637.2 \n401.5 \n BILATERAL \n5,459.8 \n5,274.0 \n5,278.8 \n5,313.2 \n5,403.5 \n5,552.5 \n5,545.1 \n5,664.2 \n390.2 \n COMMERCIAL \n15,560.2 \n11,812.9 \n11,647.5 \n11,648.3 \n11,685.7 \n11,732.6 \n11,773.5 \n11,808.9 \n(4.0) \nTOTAL EXTERNAL(GH¢m) \n454,851.0 \n416,835.2 \n432,040.0 \n440,109.0 \n442,513.7 \n408,037.1 \n296,469.3 \n300,278.1 \n(116,557.1) \nTOTAL PUBLIC DEBT (GH¢m) \n744,845.4 \n726,680.0 \n752,119.9 \n768,145.0 \n769,416.8 \n730,332.5 \n612,099.6 \n613,000.6 \n(113,679.4) \nEXCHANGE RATE (End Period \nSelling MOF) \n14.5683 \n14.7174 \n15.3077 \n15.5378 \n15.5378 \n14.1571 \n10.2851 \n10.3152 \n \nMEMORANDUM ITEMS \n \n \n \n \n \n \n \n \n \nNOMINAL GDP ( GH¢m) \n1,176,219.9 \n1,176,219.9 \n1,400,006.1 \n1,400,006.1 \n1,400,006.1 \n1,400,006.1 \n1,400,006.1 \n1,400,006.1 \n \nTOTAL DEBT /GDP RATIO (%) \n63.33 \n61.78 \n53.72 \n54.87 \n54.96 \n52.17 \n43.72 \n43.79 \n \nEXTERNAL DEBT/GDP \n38.7 \n35.4 \n30.9 \n31.4 \n31.6 \n29.1 \n21.2 \n21.4 \n \nDOMESTIC DEBT/GDP \n24.7 \n26.3 \n22.9 \n23.4 \n23.4 \n23.0 \n22.5 \n22.3 \n \nEXTERNAL DEBT/TOTAL DEBT \n61.1 \n57.4 \n57.4 \n57.3 \n57.5 \n55.9 \n48.4 \n49.0 \n \nDOMESTIC DEBT/TOTAL DEBT \n38.9 \n42.6 \n42.6 \n42.7 \n42.5 \n44.1 \n51.6 \n51.0 \n \nSource: Bank of Ghana, Ministry of Finance \n \n7.5 Outlook \nSystemic revenue leakages at key customs collection points, along with the smuggling of goods, \ncontinue to undermine revenue mobilisation efforts. Wage and salary overruns are placing significant \npressure on the compensation budget and pose a threat to fiscal consolidation. Additionally, rising fuel \ncosts to support power generation could place further pressure on the national budget and warrant close \nmonitoring. \n \n \n \n \n \n45 \n \nPUBLIC \n7.6 Conclusion \nThe fiscal performance for the first half of 2025 showed significant improvement, with the primary \nbalance on a commitment basis (the fiscal anchor) recording a surplus of 1.1 percent of GDP, surpassing \nthe target of 0.4 percent. Total revenue and grants posted a mixed performance: while non-oil tax \nrevenue exceeded targets, petroleum receipts, non-oil non-tax revenue, and grants underperformed. \nExpenditures were tightly managed, with total spending 14.3 percent below the programmed amount. \nInterest payments declined, driven by reduced borrowing, lower interest costs, and the appreciation of \nthe local currency. Budget financing relied heavily on domestic sources, with net domestic financing \namounting to GH¢13,076.8 million—well below the target. The record appreciation of the Ghana cedi \ncontributed to a reduction in the debt burden and accelerated progress toward debt sustainability. \n \n \n \n46 \n \nPUBLIC \n8. Price Developments \n \n8.0 Highlights \nDomestic inflation has declined consistently through the first half of 2025, cumulatively dropping by \n10.1 percentage points since December 2024. The decline has been broad-based, across both the food \nand non-food categories. It has also been driven by tight monetary policy and a sharp appreciation of \nthe domestic currency. Staff projections show a high probability of inflation declining to 12 percent in \nthe third quarter of 2025 and further down to the medium-term target of 8 ± 2 percent by the end of \n2025. \n \n8.1 Global Growth and Inflation Developments \nThe global disinflation process has stalled in some advanced economies, primarily due to rising food, \nenergy and services costs. Moreover, recent U.S. tariff actions and corresponding retaliatory measures \nhave heightened long-term inflation expectations in many emerging market economies. As a result, \nglobal inflation is projected to remain elevated in the near-term, with some upside risks—mainly \nstemming from persistent trade protectionism and policy uncertainty. Global inflation is expected to \nreturn to target levels sooner in advanced economies, reaching 2.2 percent by 2026 from 2.5 percent in \n2025. In contrast, emerging market and developing economies will see a slower decline, with inflation \neasing to 4.6 percent from 5.5 percent over the same period (World Economic Outlook, April 2025). \n \nGlobal economic activity is expected to be significantly impacted by the rapid escalation of trade \ntensions and exceptionally high levels of policy uncertainty. The direct effects of new trade measures—\nalongside their indirect spillovers through heightened uncertainty and deteriorating sentiments—\nprompted a downgrade of global growth projections (World Economic Outlook, April 2025). These \nrevisions were broad-based across regions, reflecting widespread vulnerabilities. Moreover, high-\nfrequency indicators, such as purchasing managers’ surveys, further signal a slowdown in growth \nmomentum. \n \nFigure 8.1: Advanced Economies Headline Inflation Rates (%) \n \nSource: Trading Economics \n \n \n \n \n \n-2\n-1\n0\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\nApr-21\nJun-21\nAug-21\nOct-21\nDec-21\nFeb-22\nApr-22\nJun-22\nAug-22\nOct-22\nDec-22\nFeb-23\nApr-23\nJun-23\nAug-23\nOct-23\nDec-23\nFeb-24\nApr-24\nJun-24\nAug-24\nOct-24\nDec-24\nFeb-25\nApr-25\nJun-25\nUS\nUK\nJapan\nEuro Area\nInflation in Advanced Economies \n(Year-on-Year, percent)\nSource: Trading Economics\n \n47 \n \nPUBLIC \n \nFigure 8.2: Emerging Markets Economies Headline Inflation Rates (%) \n \nSource: Trading Economics \n \n \nFigure 8.3: Global growth projections \n \nSource: IMF WEO, April 2025 \n \n8.2 Domestic Price Developments \nDomestic inflation declined steadily throughout the first half of 2025, with broad-based moderation \nacross both food and non-food categories. Headline inflation fell to 13.7 percent in June 2025, down \nfrom 23.8 percent in December 2024, driven by tight monetary policy and a sharp appreciation of the \ndomestic currency. This represents a cumulative decline of 10.1 percentage points over the six-month \nperiod. \n \nNon-food inflation dropped significantly from 20.3 percent in December 2024 to 11.4 percent in June \n2025, while food inflation also saw a sharp decline—falling to 16.3 percent from 27.8 percent over the \nsame period. These improvements were largely due to a 42.6 percent year-to-date appreciation of the \nGhana Cedi as at June 2025, which helped ease imported inflation, stabilize prices and re-anchor \ninflation expectations. Additionally, stepped-up liquidity sterilization efforts and a downward revision \nin ex-pump petroleum prices, which triggered a 15 percent reduction in transport fares, further \nsupported the disinflation process. \n \n0.0\n10.0\n20.0\n30.0\n40.0\n50.0\n60.0\n70.0\n80.0\n90.0\n-2\n0\n2\n4\n6\n8\n10\n12\n14\nApr-21\nJun-21\nAug-21\nOct-21\nDec-21\nFeb-22\nApr-22\nJun-22\nAug-22\nOct-22\nDec-22\nFeb-23\nApr-23\nJun-23\nAug-23\nOct-23\nDec-23\nFeb-24\nApr-24\nJun-24\nAug-24\nOct-24\nDec-24\nFeb-25\nApr-25\nJun-25\nChina\nBrazil\nTurkey (LHS)\nInflation in Emerging Markets Economies\n(Year-on-Year, percent)\nSource: Trading Economics\n \n48 \n \nPUBLIC \nFigure 8.4: Year on Year Inflation \n \nSource: GSS and Bank of Ghana Staff Calculations \n \nThe Bank’s main measure of core inflation continues to ease. The core inflation rate, which excludes \nenergy and utility items from the consumer basket, fell to 13.0 percent in June 2025 from 23.1 percent \nin December 2024. An assessment of inflation expectations which incorporates surveys of banks, \nbusinesses, and consumers, indicates well-anchored inflation expectations across all economic sectors. \n \nFigure 8.5: Headline vs Core Inflation (%) \n \nSource: GSS and Bank of Ghana Staff Calculations \n \nOn a month-on-month basis, headline inflation fell sharply to -1.2 percent in June 2025 from 0.7 percent \nin May 2025, on account of the 15 percent reduction in transport fares which took effect in May 2025 \nand the recent appreciation in the Cedi. Monthly food inflation dropped to -0.5 percent in June 2025 \nfrom 0.6 percent in May 2025. Similarly, month-on-month non-food inflation dropped significantly to \n-1.8 percent from 0.6 percent over the same period. \n \n \n \n \n \n \n0\n10\n20\n30\n40\n50\n60\nJun-22\nAug-22\nOct-22\nDec-22\nFeb-23\nApr-23\nJun-23\nAug-23\nOct-23\nDec-23\nFeb-24\nApr-24\nJun-24\nAug-24\nOct-24\nDec-24\nFeb-25\nApr-25\nJun-25\nYear on Year Inflation\nHeadline\nLower Band\nUpper Band\n4\n14\n24\n34\n44\n54\n64\nJun-22\nJul-22\nAug-22\nSep-22\nOct-22\nNov-22\nDec-22\nJan-23\nFeb-23\nMar-23\nApr-23\nMay-23\nJun-23\nJul-23\nAug-23\nSep-23\nOct-23\nNov-23\nDec-23\nJan-24\nFeb-24\nMar-24\nApr-24\nMay-24\nJun-24\nJul-24\nAug-24\nSep-24\nOct-24\nNov-24\nDec-24\nJan-25\nFeb-25\nMar-25\nApr-25\nMay-25\nJun-25\nHeadline vs Core Inflation (%)\nCore 1 (Excluding Fuel, and Utilities)\nHeadline Inflation\n \n49 \n \nPUBLIC \nFigure 8.6: Month-on-Month Inflation (%) \n \nSource: Ghana Statistical Service \n \n \n \nTable 8.1: CPI Components \n \n \n8.3 Inflation Risk Assessment and Outlook \nHeadline inflation is expected to decline to 12 percent in the third quarter of 2025 and further down to \nthe medium-term target of 8 ± 2 percent by the end of 2025, reflecting the impact of monetary policy \ntightening, the appreciation of the cedi, and the ongoing fiscal consolidation. \n \nMoreover, supply-side pressures have eased, reducing their contribution to food and headline inflation. \nIn the outlook, risks to inflation are tilted to the downside. However, upside risks remain, including \nbroader supply chain challenges, global trade tensions, a 2.5 percent upward adjustment in utility tariffs, \nand the introduction of a new GHS 1.0 energy levy on ex-pump prices, which could impact inflation. \n \nGoing forward, exchange rate stability is expected to persist, supported by significant improvements in \nthe external sector. These improvements have led to the accumulation of international reserves, far \nexceeding the ECF-supported program target, which will further aid the disinflation process. \nAdditionally, factors such as a tight monetary policy stance, ongoing fiscal consolidation, and stable \ncrude oil prices could help offset the upside risks to disinflation. \n-3\n-2\n-1\n0\n1\n2\n3\n4\n5\n6\nJun-\n23\nJul-\n23\nAug-\n23\nSep-\n23\nOct-\n23\nNov-\n23\nDec-\n23\nJan-\n24\nFeb-\n24\nMar-\n24\nApr-\n24\nMay-\n24\nJun-\n24\nJul-\n24\nAug-\n24\nSep-\n24\nOct-\n24\nNov-\n24\nDec-\n24\nJan-\n25\nFeb-\n25\nMar-\n25\nApr-\n25\nMay-\n25\nJun-\n25\nHeadline\n3.2\n3.6\n-0.2\n1.9\n0.3\n1.8\n1.2\n2.0\n1.6\n0.8\n1.8\n3.2\n2.9\n2.1\n-0.7\n2.8\n0.9\n2.6\n1.8\n1.7\n1.3\n0.2\n0.8\n0.7\n-1.2\nFood\n3.9\n3.8\n-0.3\n1.6\n-0.3\n1.2\n1.3\n1.6\n1.9\n1.0\n2.1\n2.7\n5.1\n1.7\n-2.2\n4.2\n0.3\n3.8\n2.8\n2.0\n1.8\n-0.2\n0.9\n0.9\n-0.5\nNon-food\n2.6\n3.4\n-0.2\n2.1\n0.9\n2.3\n1.0\n2.4\n1.3\n0.7\n1.5\n3.6\n0.9\n2.4\n0.7\n1.6\n1.4\n1.6\n0.7\n1.4\n0.9\n0.7\n0.7\n0.6\n-1.8\nMonthly Inflation\nWeghts\nDec\nApr\nMay\nJun\nJul\nDec\nJan\nFeb\nMar\nApr\nMay\nJun\n(%)\nOverall \n100.0\n23.2\n25.0\n23.1\n22.8\n20.9\n23.8\n23.5\n23.1\n22.4\n21.2\n18.4\n13.7\nFood and Beverages\n42.7\n28.7\n26.8\n22.6\n24.0\n21.5\n27.8\n28.6\n28.1\n26.5\n25.0\n22.8\n16.3\nNon-food\n57.4\n18.7\n23.5\n23.6\n21.6\n20.5\n20.3\n19.2\n18.8\n18.7\n17.9\n14.4\n11.4\nAlcoholic Beverages, Tobacco & Narcotics\n3.9\n38.2\n39.4\n34.2\n32.3\n26.8\n28.4\n27.2\n25.6\n23.8\n24.0\n22.4\n16.0\nClothing and footwear\n8.0\n22.3\n23.8\n20.5\n18.2\n16.9\n20.0\n19.8\n19.2\n19.3\n19.7\n19.3\n17.2\nHousing and Utilities\n10.2\n19.5\n28.1\n26.9\n26.0\n28.6\n26.3\n24.6\n24.3\n25.1\n22.5\n21.6\n24.9\nFurnishings, Household Equipment\n3.2\n26.9\n21.3\n17.9\n17.0\n14.3\n16.7\n15.3\n15.4\n15.3\n15.1\n13.9\n10.5\nHealth\n0.7\n23.0\n31.2\n26.5\n22.6\n21.2\n21.4\n18.4\n16.6\n16.8\n15.0\n14.1\n11.3\nTransport\n10.5\n4.4\n10.3\n20.3\n19.0\n18.1\n16.8\n16.9\n17.9\n16.8\n14.9\n3.1\n-8.5\nInformation and Communication\n3.6\n14.2\n14.7\n13.2\n10.4\n10.1\n12.0\n11.6\n10.8\n10.8\n10.9\n9.7\n10.4\nRecreation & Culture\n3.5\n24.9\n28.7\n24.1\n20.5\n17.1\n17.4\n17.4\n16.5\n20.7\n22.8\n22.5\n20.1\nEducation\n6.6\n13.9\n23.4\n25.2\n20.9\n18.0\n19.1\n13.9\n12.3\n11.3\n11.7\n6.3\n6.0\nRestaurants and accommodation services\n4.3\n28.0\n33.9\n31.6\n30.7\n28.3\n16.5\n16.5\n14.2\n13.3\n10.7\n10.4\n9.6\nInsurance and Financial services\n0.4\n8.1\n9.6\n8.7\n6.2\n11.3\n16.5\n15.4\n16.1\n16.6\n16.9\n16.9\n15.9\nPersonal care, social protection & Miscellaneous services\n2.5\n31.1\n31.9\n24.3\n19.5\n16.0\n19.3\n17.9\n17.1\n17.4\n17.2\n17.2\n11.4\n2023\nCPI Components (%)\n2024\n2025\nSource: Ghana Statistical Service\n \n50 \n \nPUBLIC \n \n \nDecision on the Monetary Policy Rate \nOverall, the Committee noted that macroeconomic conditions have significantly improved, inflation \nexpectations are broadly anchored, external buffers have strengthened, and confidence in the economy \nis returning. The July forecast also shows that headline inflation is expected to decline further in the \nthird quarter of 2025 and trend within the medium-term target of 8±2 percent by the end of 2025, earlier \nthan initial projections. However, there are upside risks to the inflation outlook, which include potential \nsupply chain challenges emanating from the global trade tensions, and upward adjustment in utility \ntariffs. This notwithstanding, the impact of these risks on inflation are expected to be offset by \nappropriately tight monetary policy stance and continued fiscal consolidation. \n \nGiven these considerations, the Committee, by a majority decision, voted to lower the Monetary Policy \nRate by 300 basis points to 25.0 percent. Looking ahead, the Committee will continue to assess \nincoming data and likely reduce the policy rate further, should the disinflation trend continue. The \nCommittee remains committed to the price stability mandate, while creating conditions for inclusive \nand sustainable growth. \n \n \n \n \n51 \n \nPUBLIC \nAPPENDIX \n \nTable A.1: Sources of Growth in Total Liquidity (GH¢ Millions, unless otherwise stated) \n \n Source: Bank of Ghana Staff Calculations \n \nTable A.2: Sources of Growth in Reserve Money (GH¢ Millions, unless otherwise stated) \n \nSource: Bank of Ghana Staff Calculations \nAppendix 1: Sources of Growth in Total Liquidity (M2+) (millions of Ghana cedis unless otherwise stated)\nMay-23\nJun-23\nDec-23\nJun-24\nSep-24\nDec-24\nMar-25\nMay-25\nJun-25\n1 Net Foreign Assets\n(4341.98)\n649.68\n21710.89\n49084.99\n65801.73\n87417.32\n102671.42\n75204.72\n75772.12\n Bank of Ghana\n(17154.60) (13750.27)\n4021.06\n23057.19\n34489.38\n47647.12\n65439.11\n50189.42\n57633.89\n Commercial Banks\n12812.61\n14399.95\n17689.83\n26027.80\n31312.35\n39770.20\n37232.31\n25015.30\n18138.23\n2 Net Domestic Assets\n211287.26\n208970.93\n228308.31\n231954.03\n245378.55\n242321.48\n241260.50\n250805.60\n249222.50\n3 ow: Claims on government (net)\n144436.51\n137161.10\n115681.46\n117391.93\n130147.19\n113291.69\n114016.14\n108639.33\n108861.84\n4 ow: Claims on Private sector( Incl. PE's)\n86924.88\n87839.24\n86096.51\n93719.28\n101487.64\n105901.21\n104292.76\n96693.98\n99507.29\n BOG OMO Sterilisation Acc.\n(31024.06) (27273.48)\n(24795.37)\n(16244.51)\n(21138.18)\n(18142.88)\n(35561.16)\n(60803.22)\n(75269.68)\n5 Total Liquidity (M2+)\n206945.28\n209620.61\n250019.20\n281039.02\n311180.28\n329738.77\n343931.92\n326010.32\n324994.62\n6 ow: Broad Money Supply (M2)\n149200.43\n150070.56\n185425.80\n203530.25\n229253.49\n247761.93\n255756.31\n267720.94\n265190.99\n7 ow: Foreign Currency Deposits(¢million)\n57744.85\n59550.05\n64593.40\n77508.78\n81926.79\n81976.84\n88175.61\n58289.38\n59803.63\nChange from previous year (in per cent)\n8 Net Foreign Assets\n(34.09)\n(108.70)\n(310.35)\n7455.25\n(3972.59)\n302.64\n201.22\n78.59\n54.37\n9 Net Domestic Assets\n41.58\n36.92\n19.79\n11.00\n11.10\n6.14\n6.27\n7.19\n7.44\n10 ow: Claims on government (net)\n52.27\n42.22\n(9.28)\n(14.41)\n9.93\n(2.07)\n(3.66)\n(11.53)\n(7.27)\n11 ow: Claims on Private sector( Incl. PE's)\n24.64\n23.12\n1.20\n6.69\n15.14\n23.00\n21.00\n6.86\n6.18\n12 ow: BOG OMO Sterilisation Acc.\n(498.64)\n(495.08)\n(220.96)\n40.44\n42.22\n26.83\n(57.31)\n(268.27)\n(363.35)\n12 Total Liquidity (M2+)\n45.08\n44.41\n38.69\n34.07\n41.99\n31.89\n31.71\n18.08\n15.64\n13 Broad Money Supply (M2)\n41.29\n40.93\n37.21\n35.62\n44.50\n33.62\n34.48\n34.76\n30.30\n14 Foreign Currency Deposits (FCDs)\n55.89\n54.00\n43.15\n30.16\n35.38\n26.91\n24.30\n(24.71)\n(22.84)\nCummulative change from previous year end (in per cent)\n15 Net Foreign Assets\n(57.93)\n(106.29)\n(310.35)\n126.08\n203.08\n302.64\n17.45\n(13.97)\n(13.32)\n16 Net Domestic Assets\n10.86\n9.65\n19.79\n1.60\n7.48\n6.14\n(0.44)\n3.50\n2.85\n17 o/w: Claims on government (net)\n13.27\n7.56\n(9.28)\n1.48\n12.50\n(2.07)\n0.64\n(4.11)\n(3.91)\n18 Broad Money(M2+)\n14.80\n16.28\n38.69\n12.41\n24.46\n31.89\n4.30\n(1.13)\n(1.44)\nAnnual per cent contribution to money growth\n19 Net Foreign Assets\n1.57\n5.59\n17.77\n23.11\n30.80\n26.28\n26.27\n11.99\n9.50\n20 NDA\n43.51\n38.82\n20.92\n10.96\n11.19\n5.60\n5.45\n6.10\n6.14\n21 Total Liquidity (M2+)\n45.08\n44.41\n38.69\n34.07\n41.99\n31.89\n31.71\n18.08\n15.64\nMemorandum items\n22 Reserve Money \n61727.91\n62343.44\n87987.66\n110578.33\n120771.47\n130481.72\n143154.12\n138174.99\n112735.91\n23 NFA ($million)\n(395.75)\n59.08\n1827.52\n3365.21\n4164.67\n5946.76\n6611.17\n7337.05\n7349.38\n24 Currency ratio\n0.18\n0.18\n0.18\n0.19\n0.20\n0.24\n0.22\n0.24\n0.22\n25 FCD/M2+ \n0.28\n0.28\n0.26\n0.28\n0.26\n0.25\n0.26\n0.18\n0.18\n26 FCD/Total Deposit \n0.33\n0.33\n0.30\n0.33\n0.32\n0.31\n0.31\n0.22\n0.22\n27 RM multiplier\n2.42\n2.41\n2.11\n1.84\n1.90\n1.90\n1.79\n1.94\n2.35\nAppendix 2: Sources of Growth in Reserve Money (millions of Ghana cedis unless otherwise stated)\nJun-23\nDec-23\nJun-24\nSep-24\nDec-24\nMar-25\nMay-25\nJun-25\n1 Net Foreign Assets ( NFA)\n(13,750.27)\n \n4021.1\n23057.2\n34489.4\n47647.1\n65439.1\n50189.4\n57633.9\n2 Net Domestic Assets ( NDA)\n76093.7\n84278.4\n87521.1\n86282.1\n82834.6\n77715.0\n87985.6\n55102.0\nof which:\n3 ow: Claims on government (net)\n82951.8\n54356.1\n55138.4\n69537.6\n56031.5\n56703.2\n56530.1\n53033.0\n4 Claims on DMB's (net)\n(8502.2)\n(9878.4)\n(13451.5) (26897.1) (21783.3) (15238.3) (14131.6) (27840.7)\n5 OMO Sterilisation Account.\n(27273.5)\n(24795.4) (16244.5) (21138.2) (18142.9) (35561.2) (60803.2) (75269.7)\n6 Reserve Money ( RM)\n62343.4\n88299.4\n110578.3 120771.5 130481.7 143154.1 138175.0 112735.9\n7 ow:Currency \n31238.5\n37620.7\n44895.6\n52752.8\n64127.7\n61995.8\n62084.4\n58090.4\n8 DMB's reserves\n25888.2\n38050.2\n58972.2\n60760.4\n58769.1\n73241.6\n67995.3\n46779.8\n9 Non-Bank deposits\n5216.7\n12628.5\n6710.6\n7258.3\n7584.9\n7916.7\n8095.3\n7865.8\nChange from previous year (in per cent)\n10 Net Foreign Assets\n114.8\n(123.0)\n(267.7)\n(312.1)\n1084.9\n393.8\n212.1\n150.0\n11 Net Domestic Assets\n39.3\n(1.5)\n15.0\n8.2\n(1.7)\n2.6\n(4.6)\n(37.0)\n12 ow: Claims on government (net)\n61.3\n(31.1)\n(33.5)\n11.5\n3.1\n13.2\n(0.9)\n(3.8)\n13 Claims on DMB's (net)\n(81.7)\n(143.5)\n(58.2)\n(131.1)\n(120.5)\n4.9\n(18.6)\n(107.0)\n14 OMO Sterilisation Account.\n(495.1)\n(221.0)\n40.4\n42.2\n26.8\n(57.3)\n(268.3)\n(363.4)\n15 Reserve Money ( RM)\n(8.5)\n29.7\n25.2\n36.8\n47.8\n9.7\n5.9\n(13.6)\n16 ow:Currency \n(0.6)\n19.7\n19.3\n40.2\n70.5\n(3.3)\n(3.2)\n(9.4)\nCumulative change from previous year end (in per cent)\n17 Net Foreign Assets ( NFA)\n(21.4)\n(123.0)\n473.4\n757.7\n1084.9\n37.3\n5.3\n21.0\n18 Net Domestic Assets ( NDA)\n(11.1)\n(1.5)\n3.8\n2.4\n(1.7)\n(6.2)\n6.2\n(33.5)\n19 o/w: Claims on government (net)\n5.2\n(31.1)\n1.4\n27.9\n3.1\n1.2\n0.9\n(5.4)\n20 Reserve Money ( RM)\n(8.5)\n29.7\n25.2\n36.8\n47.8\n9.7\n5.9\n(13.6)\nAnnual per cent contribution\n21 Net Foreign Assets\n(15.23)\n31.58\n59.04\n79.93\n49.41\n58.63\n31.50\n31.27\n22 Net Domestic Assets ( NDA)\n44.47\n(1.93)\n18.33\n10.27\n(1.64)\n2.20\n(3.89)\n(29.32)\n23 RM growth ( y-o-y)\n29.24\n29.65\n77.37\n90.20\n47.77\n60.83\n27.61\n1.95\n \n52 \n \nPUBLIC \nTable A.3: DMB’s Credit Allocations (GH¢ Millions, unless otherwise stated) \n \nSource: Bank of Ghana \n \nTable A.4: Asset and Liability Structure of the Banking Sector \n \nSource: Bank of Ghana Staff Calculations \n \nTable A.5: Credit Growth \n \nSource: Bank of Ghana Staff Calculations \n \n \nTable A.6: Contingent Liabilities \n \nSource: Bank of Ghana Staff Calculations \n \nAs at end-June .2023\nAs at end June .2024\nAs at end-June. 2025\nJun-23\nJun-24\nJun-25\nAbs\nPercent\nAbs\nPercent\nAbs\nPercent\na Public Sector\n6,754.31\n \n6,416.98\n \n4,411.57\n \n552.49\n \n8.91\n \n(337.33)\n \n(4.99)\n \n(2,005.41)\n \n(31.25)\n \nb Private Sector\n66,370.96\n \n78,061.73\n \n84,752.43\n \n9,210.01\n \n16.11\n \n11,690.77\n \n17.61\n \n6,690.70\n \n8.57\n \n Agric.,For. & Fish.\n2,619.62\n \n3,047.99\n \n3,505.61\n \n575.17\n \n28.13\n \n428.37\n \n16.35\n \n457.62\n \n15.01\n \n Export Trade\n474.92\n \n577.22\n \n514.08\n \n229.50\n \n93.51\n \n102.30\n \n21.54\n \n(63.14)\n \n(10.94)\n \n Manufacturing\n7,739.05\n \n8,986.70\n \n9,405.91\n \n1,704.23\n \n28.24\n \n1,247.65\n \n16.12\n \n419.21\n \n4.66\n \n Trans.,Stor., & Comm.\n3,770.45\n \n4,810.42\n \n4,018.45\n \n669.33\n \n21.58\n \n1,039.97\n \n27.58\n \n(791.97)\n \n(16.46)\n \n Mining & Quarrying\n2,489.31\n \n2,751.86\n \n2,527.78\n \n1,159.06\n \n87.13\n \n262.54\n \n10.55\n \n(224.08)\n \n(8.14)\n \n Import Trade\n4,904.19\n \n7,212.92\n \n7,070.12\n \n2,972.82\n \n153.92\n \n2,308.73\n \n47.08\n \n(142.80)\n \n(1.98)\n \n Construction\n6,503.67\n \n7,405.79\n \n7,478.35\n \n539.44\n \n9.04\n \n902.12\n \n13.87\n \n72.56\n \n0.98\n \n Commerce & Finance\n9,828.76\n \n11,507.33\n \n13,213.80\n \n(1,097.97)\n \n(10.05)\n \n1,678.57\n \n17.08\n \n1,706.47\n \n14.83\n \n Elect.,Gas & Water\n2,606.11\n \n2,275.37\n \n2,255.83\n \n(23.54)\n \n(0.90)\n \n(330.73)\n \n(12.69)\n \n(19.54)\n \n(0.86)\n \n Services\n21,235.79\n \n24,890.15\n \n31,810.31\n \n2,151.38\n \n11.27\n \n3,654.36\n \n17.21\n \n6,920.15\n \n27.80\n \n Miscellaneous\n4,199.07\n \n4,595.97\n \n2,952.19\n \n330.59\n \n8.55\n \n396.90\n \n9.45\n \n(1,643.78)\n \n(35.77)\n \nc Grand Total\n73,125.27\n \n84,478.71\n \n89,164.00\n \n9,762.49\n \n15.41\n \n11,353.44\n \n15.53\n \n4,685.30\n \n5.55\n \nLevels (GH¢ Millions)\nYear -On-Year Variation\nJun-22\nJun-23\nJun-24\nApr-25\nJun-25\nComponents of Assets (% of Total)\nCash and Due from Banks\n23.4\n27.7\n35.8\n36.6\n28.9\nInvestments\n40.5\n37.1\n33.2\n34.7\n42.3\nNet Advances\n28.1\n25.8\n21.4\n19.3\n19.0\nOthers\n8.0\n9.4\n9.6\n9.4\n9.9\nComponents of Liabilities and Shareholders' Funds (% of Total)\nTotal Deposits\n65.7\n \n77.4\n \n76.1\n \n74.2\n \n72.9\n \nTotal Borrowings\n13.2\n \n6.6\n \n7.2\n \n8.4\n \n8.6\n \nShareholders' Funds\n13.1\n \n9.2\n \n10.0\n \n11.3\n \n12.5\n \nOther Liabilities\n8.0\n \n6.6\n \n6.5\n \n5.8\n \n5.6\n \nJun-23\nJun-24\nApr-25\nJun-25\nJun-24\nJun-25\nPublic Sector\n6,754.31\n \n6,416.98\n5,371.95\n4,411.57\n-5.0\n-31.3\nPrivate Sector\n66,370.96\n \n78,113.05\n86,812.87\n85,291.32\n17.7\n9.2\n - Private Enterprises\n48,643.78\n \n57,447.21\n60,583.75\n59,981.12\n18.1\n4.4\n o/w Foreign\n3,219.23\n \n4,469.18\n3,830.60\n3,062.63\n38.8\n-31.5\n Indigeneous\n45,424.55\n \n52,978.03\n56,753.14\n56,918.49\n16.6\n7.4\n - Households\n16,208.51\n \n19,289.09\n22,971.64\n22,056.03\n19.0\n14.3\nGross Loans\n73,125.3\n84,530.0\n92,184.82\n89,702.9\n15.6\n6.1\nEconomic Sector\nGh¢million\ny/y growth (%)\nJun-22\nJun-23\nJun-24\nApr-25\nJun-25\nContingent Liabilities (GH¢million)\n21,921.0\n \n19,885.5\n \n25,657.6\n \n20,950.2\n \n16,811.5\n \nGrowth (y-o-y)\n55.8\n-9.3\n29.0\n-14.1\n-34.5\n% of Total Liabilities\n12.6\n9.0\n8.8\n6.1\n5.0\n \n53 \n \nPUBLIC \nTable A.7: Distribution of Loans and NPLs by Economic Sector (%) \n \nSource: Bank of Ghana Staff Calculations \n \nTable A.8: Liquidity Ratios \n \nSource: Bank of Ghana Staff Calculations \n \nTable A.9: Profitability Indicators (%) \n \nSource: Bank of Ghana Staff Calculations \n \n \n \n \n \n \n \n \n \n \n \n \n \na. Public Sector\n9.2\n4.5\n7.6\n4.4\n5.8\n3.5\n4.9\n3.6\n i. Government\n4.1\n2.3\n2.7\n1.2\n1.5\n0.9\n1.1\n1.2\n ii. Public Institutions\n1.8\n0.0\n1.6\n0.1\n1.0\n0.5\n1.1\n0.5\n iii. Public Enterprises\n3.3\n2.2\n3.3\n3.1\n3.3\n2.1\n2.8\n1.9\nb. Private Sector\n90.8\n95.5\n92.4\n95.6\n94.2\n96.5\n95.1\n96.4\n i. Private Enterprises\n66.5\n84.0\n67.9\n83.6\n65.7\n84.1\n66.9\n83.6\n o/w Foreign\n4.4\n2.6\n5.3\n2.2\n4.2\n2.2\n3.4\n1.8\n Indigeneous\n62.1\n81.4\n62.7\n81.5\n61.6\n82.0\n63.5\n81.8\n ii. Households\n22.2\n10.8\n22.8\n11.1\n24.9\n11.5\n24.6\n11.9\n iii. Others\n2.1\n0.7\n1.6\n0.8\n3.5\n0.9\n1.7\n0.9\nShare in Total \nCredit\nShare in \nNPLs\nShare in \nTotal Credit\nShare in \nNPLs\nShare in Total \nCredit\nShare in \nNPLs\nJun-23\nJun-24\nApr-25\nJun-25\nShare in Total \nCredit\nShare in \nNPLs\nJun-22\nJun-23\nJun-24\nApr-25\nJun-25\nLiquid Assets (Core) - (GH¢'million)\n46,726.4\n \n67,100.0\n \n115,827.0\n \n142,771.0\n \n110,906.3\n \nLiquid Assets (Broad) -(GH¢'million)\n127,547.3\n \n156,811.9\n \n222,701.8\n \n277,736.9\n \n272,954.5\n \nLiquid Assets to total deposits (Core)-%\n35.6\n \n35.8\n \n47.1\n \n49.3\n \n39.6\n \nLiquid Assets to total deposits (Broad)- %\n97.1\n \n83.6\n \n90.6\n \n95.9\n \n97.4\n \nLiquid assets to total assets (Core)- %\n23.4\n \n27.7\n \n35.8\n \n36.6\n \n28.9\n \nLiquid assets to total assets (Broad)- %\n63.8\n \n64.7\n \n68.9\n \n71.2\n \n71.0\n \nJun-23\nJun-24\nApr-25\nJun-25\nGross Yield\n9.1\n9.4\n5.8\n8.9\nInterest Payable\n3.2\n3.0\n1.8\n2.8\nSpread\n6.0\n6.4\n4.0\n6.0\nAsset Utilitisation\n8.3\n7.1\n4.6\n7.4\nInterest Margin to Total Assets\n4.1\n3.7\n2.4\n3.7\nInterest Margin to Gross income\n49.1\n51.4\n51.3\n50.1\nProfitability Ratio\n21.3\n23.5\n23.8\n25.3\nReturn On Equity (%) after tax\n37.6\n35.3\n30.0\n32.2\nReturn On Assets (%) before tax\n5.5\n5.4\n5.0\n5.6\n \n54 \n \nPUBLIC \nTable A.10: DMBs’ Income Statement \n \nSource: Bank of Ghana Staff Calculations \n \n \nTable A.11: Developments in Offshore Balances \n \nSource: Bank of Ghana Staff Calculations \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \nJun-23\nJun-24\nApr-25\nJun-25\nJun-24\nApr-25\nJun-25\nInterest Income\n15,092.6\n \n17,980.5\n \n13,905.0\n \n21,647.4\n \n19.1\n \n15.9\n20.4\nInterest Expenses\n(5,211.3)\n \n(6,180.4)\n \n(4,708.8)\n \n(7,457.9)\n \n18.6\n \n16.5\n20.7\nNet Interest Income\n9,881.2\n \n11,800.0\n \n9,196.2\n \n14,189.5\n \n19.4\n \n15.5\n20.2\nFees and Commissions (Net)\n2,243.4\n \n2,620.1\n \n2,006.0\n \n3,087.5\n \n16.8\n \n26.2\n17.8\nOther Income\n2,805.7\n \n2,352.5\n \n2,022.2\n \n3,580.5\n \n(16.2)\n \n27.8\n52.2\nOperating Income\n14,930.3\n \n16,772.7\n \n13,224.4\n \n20,857.5\n \n12.3\n \n18.8\n24.4\nOperating Expenses \n(6,577.6)\n \n(7,594.1)\n \n(6,174.2)\n \n(9,215.8)\n \n15.5\n \n23.0\n21.4\n Staff Cost (deduct)\n(3,120.0)\n \n(3,813.7)\n \n(3,132.8)\n \n(4,731.0)\n \n22.2\n \n24.0\n24.1\n Other operating Expenses \n(3,457.7)\n \n(3,780.4)\n \n(3,041.5)\n \n(4,484.8)\n \n9.3\n \n22.0\n18.6\nNet Operating Income\n8,352.7\n \n9,178.6\n \n7,050.2\n \n11,641.7\n \n9.9\n \n15.4\n26.8\nTotal Provision (Loan losses, \nDepreciation & others)\n(1,731.9)\n \n(1,048.2)\n \n(654.2)\n \n(893.0)\n \n(39.5)\n \n(24.2)\n(14.8)\nIncome Before Tax\n6,620.8\n \n8,130.4\n \n6,396.1\n \n10,748.7\n \n22.8\n \n21.9\n32.2\nTax\n(2,320.9)\n \n(2,733.8)\n \n(2,127.7)\n \n(3,594.7)\n \n17.8\n \n21.7\n31.5\nNet Income\n4,299.9\n \n5,396.5\n \n4,268.4\n \n7,154.0\n \n25.5\n \n22.0\n32.6\nGross Income\n20,141.6\n \n22,953.1\n \n17,933.2\n \n28,315.4\n \n14.0\n \n18.2\n23.4\n (GH ¢'million)\nY-o-y Growth (%)\nJun-22\nJun-23\nJun-24\nApr-25\nJun-25\nOffshore balances as % to Networth\n39.6\n78.3\n92.6\n89.2\n41.1\nAnnual Growth in Offshore balances (%)\n13.4\n67.8\n71.4\n53.2\n-34.1\nAnnual Growth in Nostro Balances (%)\n-10.7\n77.9\n73.6\n18.7\n-44.7\nAnnual Growth in Placement (%)\n51.7\n58.8\n69.4\n84.4\n-22.8\n \n55 \n \nPUBLIC \n \nTable A.12: Fiscal indicators \nMillion Ghana Cedis \n2024 \n2024 \n2025 \n2025 \n2025 \n2025/2024 \n \nQ1+Q2 \nQ1 \nQ1+Q2 \nQ1+Q2 \nDEVIATION \nY-O-Y \n \nOUTTURN \nOUTTURN \nOUTTURN \nPROG \nOVER(+)/ \nBELOW(-) \nGROWTH \nDomestic Revenue \n \n74,864.3 \n \n30,378.9 \n \n98,609.4 \n \n101,508.8 \n \n(2.9) \n \n31.7 \n (percent of GDP) \n 6.4 \n \n2.9 \n 7.0 7.3 \n \n \nDomestic expenditure \n \n72,749.2 \n \n34,417.9 \n \n81,102.6 \n \n88,121.5 \n \n(8.0) \n \n11.5 \n (percent of GDP) \n 6.2 \n \n3.3 \n 5.8 6.3 \n \n \nDomestic Primary Balance \n \n2,115.2 \n \n(4,039.0) \n \n17,506.8 \n \n13,387.3 \n \n30.8 \n \n727.7 \n (percent of GDP) \n 0.2 \n \n(0.4) \n 1.3 1.0 \n \n \nPrimary Balance (Commitment) \n \n(4,161.3) \n \n(6,025.4) \n \n15,083.4 \n \n5,039.3 \n \n199.3 \n \n(462.5) \n (percent of GDP) \n \n(0.4) \n \n(0.6) \n 1.1 0.4 \n \n \nPrimary Balance (Cash) \n \n(18,307.0) \n \n(15,104.0) \n \n10,303.5 \n \n(2,457.1) \n \n(519.3) \n \n(156.3) \n (percent of GDP) \n \n(1.6) \n \n(1.4) \n 0.7 \n \n(0.2) \n \n \nNon-Oil Primary Balance \n \n(24,564.1) \n \n(17,007.7) \n \n6,762.3 \n \n(8,658.5) \n \n(178.1) \n \n(127.5) \n (percent of GDP) \n \n(2.2) \n \n(1.6) \n 0.5 \n \n(0.6) \n \n \nOverall Balance (Commitment) \n \n(23,189.8) \n \n(18,588.2) \n \n(10,339.6) \n \n(25,465.4) \n \n(59.4) \n \n(55.4) \n (percent of GDP) \n \n(2.0) \n \n(1.8) \n \n(0.7) \n \n(1.8) \n \n \nOverall Balance (cash, discrepancy) \n \n(37,335.5) \n \n(27,666.8) \n \n(15,119.5) \n \n(32,961.7) \n \n(54.1) \n \n(59.5) \n (percent of GDP) \n \n(3.2) \n \n(2.6) \n \n(1.1) \n \n(2.4) \n \n \nOil Revenue \n \n6,257.1 \n \n1,903.8 \n \n3,541.2 \n \n6,201.5 \n \n(42.9) \n \n(43.4) \n (percent of GDP) \n 0.5 \n \n0.2 \n 0.3 0.4 \n \n \nNon-Oil Revenue and Grants \n \n69,845.1 \n \n28,510.1 \n \n95,798.2 \n \n96,375.9 \n \n(0.6) \n \n37.2 \n (percent of GDP) \n 5.9 \n \n2.7 \n 6.8 6.9 \n \n \nBenchmark Oil Revenue \n \n4,455.7 \n \n1,116.4 \n \n2,750.6 \n \n4,780.3 \n \n(42.5) \n \n(38.3) \n (percent of GDP) \n 0.4 \n \n0.1 \n 0.2 0.3 \n \n \nAnnual Budget Funding Amount (ABFA) \n \n3,119.0 \n \n781.5 \n \n1,925.4 \n \n3,346.2 \n \n(42.5) \n \n(38.3) \n (percent of GDP) \n 0.3 \n \n0.1 \n 0.1 0.2 \n \nNominal GDP \n \n1,176,219.9 \n \n1,050,978.3 \n \n1,400,006.1 \n \n1,400,006.1 \n \n \nNon-Oil Nominal GDP \n \n1,128,205.1 \n \n979,407.7 \n \n1,350,563.8 \n \n1,350,563.8 \n \n \nSource: Ministry of Finance \n \n \n56 \n \nPUBLIC \nTable A.13: Headline and Core Inflation \n \nCombined\nFood\nNon-food\nCombined\nFood\nNon-food\nCore 1\nCore 2\nCore 3\nCore 4\n100\n42.7\n57.3\n100\n42.7\n57.3\n93.8\n60.2\n87.0\n50.7\nDec-20\n10.4\n14.1\n7.7\n0.9\n1.5\n0.4\n11.2\n8.5\n11.4\n8.3\nDec-21\n12.6\n12.8\n12.5\n1.2\n1.2\n1.2\n11.9\n11.9\n11.5\n10.7\nDec-22\n54.1\n59.7\n49.9\n3.8\n4.1\n3.6\n53.2\n53.5\n54.4\n47.2\nDec-23\n23.2\n28.7\n18.7\n1.2\n1.3\n1.0\n24.2\n22.3\n25.5\n20.7\n2024\nJan\n23.5\n27.1\n20.5\n2.0\n1.6\n2.4\n24.2\n22.4\n25.4\n21.8\nFeb\n23.2\n27.0\n20.0\n1.6\n2.0\n1.3\n24.0\n22.2\n25.0\n21.8\nMar\n25.8\n29.6\n22.6\n0.8\n1.0\n0.7\n26.3\n24.0\n27.2\n23.8\nApr\n25.0\n26.8\n23.5\n1.8\n2.1\n1.5\n24.8\n22.9\n25.9\n22.9\nMay\n23.1\n22.6\n23.6\n3.2\n2.7\n3.6\n22.6\n21.5\n23.2\n21.9\nJun\n22.8\n24.0\n21.6\n2.9\n5.1\n0.9\n22.1\n19.5\n23.2\n19.1\nJul\n20.9\n21.5\n20.5\n2.1\n1.7\n2.4\n19.9\n16.7\n20.8\n17.3\nAug\n20.4\n19.1\n21.5\n-0.7\n-2.2\n0.7\n19.4\n16.9\n20.0\n18.9\nSep\n21.5\n22.1\n20.9\n2.8\n4.2\n1.6\n20.8\n17.6\n21.5\n18.4\nOct\n22.1\n22.8\n21.5\n0.9\n0.3\n1.4\n21.4\n19.5\n22.2\n19.1\nNov\n23.0\n25.9\n20.7\n2.6\n3.8\n1.6\n22.4\n18.7\n23.2\n17.6\nDec\n23.8\n27.8\n20.3\n1.8\n2.8\n0.7\n23.1\n18.5\n24.0\n17.1\n2025\nJan\n23.5\n28.3\n19.2\n1.7\n2.0\n1.4\n22.8\n18.0\n23.7\n16.3\nFeb\n23.1\n28.1\n18.8\n1.3\n1.8\n0.9\n22.4\n17.5\n23.3\n15.8\nMar\n22.4\n26.5\n18.7\n0.2\n-0.2\n0.7\n21.8\n17.9\n22.5\n16.0\nApr\n21.2\n25.0\n17.9\n0.8\n0.9\n0.7\n21.0\n18.0\n21.7\n16.0\nMay\n18.4\n22.8\n14.4\n0.7\n0.9\n0.6\n18.4\n15.8\n19.2\n13.9\nJune\n13.7\n16.3\n11.4\n-1.2\n-0.5\n-1.8\n13.0\n11.6\n13.6\n10.6\nSource: Ghana Statistical Service\nMonthly Changes in CPI (%)\nAnnual Changes in CPI (%)\nCore Inflation (%)\nBank of Ghana", "source": "BOG", "stratum": "cb_requests", "fetch_date": "2026-05-11", "url": "file:///SARB/Monetary_Policy_Reports/Monetary-Policy-Report-July-2025.pdf"}
\ No newline at end of file